Reimbursement Proposal [Horizon Incident]

Péssima ideia. Aliás bem suja, não garantiram a segurança da rede, agora os investidores que não tem culpa da incompetência dos desenvolvedores da Harmony tem que pagar? Pelo que estou vendo toda hora o supply está inchando. Já destruíram a moeda faz tempo. Logo logo, vira pó.

Why do you want priority over depagged asset people, just because you want to invest in one future? Maybe they want as well.

I would assume you would have delegated your ones instead of staking them with Avve, you took a greater risk for more rewards instead of delegating and help secure the network and now you want to switch places to be a long term supporter… emm

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Snapshot should be done to a date in the past. If snapshot is in the future people will buy tokens a few minutes before the snapshot and dump them a second after the snapshot. And this kind of stuff can be done by whales or people who can write code, while other people will just sit watching or play the game and loose money.

What about the brdiged assets? If you do not have a plan to bring hacked assets back to peg, what will be the future of Harmony? Without stables and ETH, BNB, etc, who will be interested in using Harmony for finance? What would be the solution then? New trustless bridge? So the old bridge assets will become worthless? This will devaluate all tokens that are paired to Stable coins liquidity pools today.

Moreover as said by many just issuing more ONE is a questionable solution. Maybe in next bull market ONE will go up again, but in the meanwile most will dump ONEs and just quit the platform.

Would it be fasible to use funds to buy back bridged assets and burn them?

The proposed plan is better than nothing, but in my opinion a long term sustainable vision should be provided too.

There is no perfect solution.

Snapshot at day before the hack: Seems resonably fair. But includes people who sold during the hack to save themselves in the compensation. (Who may at this point have even left the chain, and have no plan of returning)

Snapshot day(s) after the hack: Weeds out some of the people who sold to save themselves. But starts including speculators who were never a part of the incident to begin with.

Buy back and burning (artificial repegging) would in my opinion be the best solution as it includes a bit of both. People who have held their assets get rewarded, speculators who have supported the assets till now get rewarded. (People who sold are excluded, and short term speculators are excluded)
But it does pose it’s own problems and risks of course.

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Could Harmony and/or @stse provide some clarification on a few details from the original post/proposal?

I know the reimbursement strategy is being reworked, but I assume some of these items/ideas will still be implemented as part of the forthcoming updated proposal.

There are also a few key details that may not have been discussed in the original proposal. Could these also be addressed?


Making Reimbursement Claims

An affected user will be able to claim their ONE coins:

  1. Monthly when each distribution is made
  2. Sporadically over the course of the 3-year distribution period (but only up to the amount of ONE that has been distributed as of that point in time)
  3. All at once at the end of the 3-year period

Is that correct?

Will there be a “grace period” after the claim ends on “October 30, 2025” to allow users to collect their final distribution (e.g., a month, 3 months, 1 year, etc)? Or is that the one and only day to claim the final distribution?


What Happens to Unclaimed ONE?

What will happen to the coins that are not claimed by the end of the distribution and/or grace period? This should be stated in the proposal.

I suggest unclaimed ONE either be burned or used to buy back unpegged assets (and burn the unpegged assets).


How is “Lost” Value of Tokens Calculated?

Currently 1USDC is ~10¢. Would that mean a wallet would be reimbursed 90¢ for every 1USDC they hold?

At that point, Harmony’s already reimbursing nearly the whole unpegged token (aka, a “buyback”), but without any of the additional benefits of buying back the unpegged tokens.

Which leads to the next suggestion…


Burn Pegged Assets During Reimbursement Claims

This is straight-forward and could potentially improve the peg’s status.

In order for a wallet to claim their reimbursement ONE, they need to exchange the unpegged assets that were recorded in the snapshot. These unpegged assets would then be burned. This should be part of the claim process.

Doing nothing about the unpegged tokens is not an advisable strategy.


Two-Week Discussion Window

This is stated in the VDAO Charter. All proposals require a 2-week discussion window. Please abide by this. The initial proposal only offered 6 days of discussion, eschewing established practices.


Governance Voting is Broken

How does Harmony intend to hold a governance vote on reimbursement when it’s currently impossible to hold a proper vote? This has been an issue since February. Will Harmony help resolve this issue prior to holding a reimbursement vote?

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I would appreciate if someone from Harmony could spend 20 seconds replying to the questions here please:

Thank you.

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The difference is that users who have assets locked and frozen in AAVE seem to be in a similar situation to Celsius customers. The rest of the users still have a choice between selling or waiting for the solution.

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No reimbursement should be the proposed way, I’ll try to explain why (FYI, I invested heavily on Harmony myself but didn’t not get my funds stolen). As an investor especially in the crypto space, you should be well aware of the risks. By putting your tokens on the bridge you accepted the risks that come with smart contracts/exploits/bugs. It was your decision and you got hacked because you did not make sure the technology was mature enough and did not make enough research to establish the maturity and test coverage of those smart contracts. So, you got hacked, it is also your fault as an investor, so go after the hacker instead of damaging everybody’s investment.
That said, reimbursing by issuing more tokens is going to be devastating for all Harmony investors, not just the “hacked” ones. If you cannot find a way without damaging the tokenomics then the right way should be no reimbursement indeed.

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@harmonyprotocol

If you are unable to quickly restore a full repegg, you will be required to prove to us that every effort has been made (but failed) to fund a full repayment of our assets entrusted to you.

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And more fund sources…

Hello, first step is to learn if Harmony Team is aware of the situation with AAVE? I’m trying to establish it here:

关键是小白都不会犯的错误。专业人士居然出问题!这丢的是私钥!中心话的东西怎么玩?

They list AAVE in the table at the bottom of the proposal.

Easy to say when you did not have any loss. What do you do with all ONE holders stuck on AAVE after trusting Harmony team which incentivised the lending of AAVE to build the defi of harmony and now all the ONE holders are currently stuck, impossible to withdraw.
No reimbursement or reppeg is clearly not an option for the future of harmony. (Your ONE bag would go to 0 anyway)

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It’s not easy to say zoufou, I lost enough money on investments to know the pain myself but I accepted it and learnt from it. I’m also one of the MtGox creditors as well so no, it is not easy to say. Still what you should accept though as an investor. What if you invested in real estate and the house would come down due to an earthquake and you didn’t have an insurance? What then? Next time you’d do the insurance and learn to better diversify your investment. Consider that an investor with no losses does not exist in history (if you’ve done it long enough). Losses are going to be there, you just have to learn how to minimize them and have more profits than losses.

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Says the guy who push for no reimbursement by thinking it will minimize his loss… but it will put your one bag to 0, that will be the result and harmony fundation will be sued in court.

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You’re not really addressing any of the comments I made, your only point is basically that since I have lost no money in this case then I can’t have an opinion which makes no sense at all. Reimbursing by issuing more tokens is only going to bring down ONE a lot, there is going to be a huge dump. So why the community should agree on that (community being EVERYBODY that invested in Harmony, not just you poor soul that lost his money because didn’t think where it was putting his tokens)? That’s basically killing the project.

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Yes, I see they list it but the question is about assets being frozen / locked:

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Okay so first of all, read the full thread and you will understand how it evolved: harmony is reworking on the plan.
Secondly, thats not a hasard if you are the only person asking for no reimbursement. And giving life lesson on investment, come on…
Thirdly, you can have your own opinion, i dont want to debate with you, that’s my last reply. If you feel enough childish to continue replying then go ahead.
Now lets refocus on the hack issue.

That’s not really “life lessons on investments” though, I was just explaining that when investing whatever happens is on you. You should’ve known that actually, the fact that you didn’t (don’t?) is quite self-explanatory. So just learn and move on.