Reimbursement Proposal [Horizon Incident]

Its disappointing BigCrypto but long term there will be new investors. You have to feel sympathy to those who have lost funds but personally I think this is a measured solution to an almost insolvable problem.

I hope the project survives but having bought 6m at 0.017 I am liquidating most of my holding as I can see conflict everywhere.

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Melheor, if ONE survives this conflict (and I think it will) new investors will come along. Like buses they always do. It might have set the project back 5 years but crypto is long term. I bought a huge amount of ONE at sub 2c and fully expected a better proposal than the one offered. But in reality this looks like the only measured approach. I am sorry for the people who have lost money, but dipping into the Treasury or re-pegging are not viable solutions without a huge influx of fresh capital. Such a shame

From what I gathered:

The team only has a bare minimum of 14-15 million dollars in USD left as runaway cash. Barely few months.

Yes - A token swap for stablecoin worth 50 million dollars with 3 year lock-up was planned before the hack, but it isn’t feasible now because they mismanaged & didn’t hedge sooner. Sheer incompetence IMO.

Using all the Harmony foundation Treasury for fund restoration breaks the tokenomics conventional model, & the team will have nothing left post that.

The better option should have been that the team take accountability, & maybe VC’s could have given second thought on a small capital injection loan worth $50 million for an year just rebuild just core-chain milestones, & few promising projects - Even the community & partners could have softened up a little if the chain showed promise.

Despite the difference in the technical nature of Axis hack, Animoca Brands was made whole by Binance itself because of a stronger VC presentation. Tse on the other hand, has been vastly unprepared for an impromptu fundraiser.

Newsflash : Daddy CZ isn’t going to save this chain. Listen to his unrelated tweet from 3rd July, 2022 (post hack timeline). Keyword : Dilution.

Edit : Inflation is probably the “only possible” option in the absence of funding. However, a 1/3rd supply inflation in 3 years is absolute madness. This much protocol inflation without building towards enough on-chain utility will kill the chain.

  • Bridge debt could be spun into staked-network equity though, as existing “wrapped assets” are deprecated on the basis of a snapshot. This staked network equity in 50k wallets could be delegated & spread over multiple existing nodes & new nodes created by the Harmony foundation to decentralise the network further.

  • Network rewards are reduced from 9% to 4.5%, a portion of the rewards are used to refill the Treasury or burning to eventually balance out the hole created by inflation. Improved on-chain activity, core development & price appreciation could lessen the impact over time. Time dilation - Three years is a short time, make it 5..

  • If the team can source a bridge loan of $10/25/50 million USD, that should still be enough of a cushion to expedite innovation first & achieving the nearest on-chain milestone & hiring more folk. Stephen can retire to an advisory position, and let others lead.

  • Remove the “no reimbursement” clause ffs. The leaders should be “absolutely embarrassed” to even float a notion like that.

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So, what does this mean with the affected assets that we are holding on chain? Are they all worthless now? How would anyone ever bridge any assets to Harmony in the future in this case? Is there any positives that we can take from these proposals?

Does anyone have an idea of the “how” of the reimbursement of impacted wallets? I understand the idea of a snapshot of impacted wallets on the 15th of August, but how does that work for wallets which attempted to cross the bridge after the hack happened but before the hack was announced (and the bridge closed), since their 1tokens are still “stuck” on the bridge? Would the blockchain be scanned for 1tokens that were burned by the bridge but not redeemed by the bridge?

Why is the negligence of the private key not mentioned in the group? How can you be sure it’s not cheating?

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In the event of failure to obtain required validator participation, we will resort to “no reimbursement”.

If I’m reading this right, I believe the two options were created with the intention of failing. Followed by the cheeky disclaimer quoted above, they essentially hand over the smoking gun to the community, while they can say it was decided by the community and remove all liability from themselves.

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Hello everyone, this news that I received from the team has devastated me, I honestly expected more from the team, I can’t believe they don’t think of us, I deposited what I had in this network month after month with the hope that it would pay off with interest that it generated, since I had to face an operation in a few months and all this is paid for in dollars, honestly they took all my hopes away.

I do not accept the above options
The fault is yours. Your solution is forcing the entire community to suffer the consequences for you
And you don’t have to lose anything

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Suit on what grounds? Can someone invite me to some ONE discussion groups-- my Telegram is @JosephRubin

Honestly there needs to be a Netflix documentary on Harmony. Maybe we can use the proceeds from a FYRE Festival like doc to reimburse / repeg.

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A day after the proposal, I think we have all agreed on 2 things:

  1. A big NO for this proposal.
  2. Stephen and Li must step down.

I believe we need a new megathread to discuss about how to move forward given the 2 conditions above.

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I’m holding 1.6 million One tokens. I will dump all my ONE coins if you do either option. I’ve lost money in crypto and I’m prepared to walk from ONE forever if you do this

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I vote NO! To either option.

I will walk from ONE all 1.6 million coins I hold if you do either.

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I agree. #harmonyonedumpifdiluted. Sell sell sell

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Did the proposer read too much art of wars and laws of power book …is this a game ?

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I was thinking of the same thing, that the foundation did not have enough money to cover the bill and on top of that pay employees, that’s why they wanted to just mint ONE’s to make up for it. But this proposal is an embarrasment. Especially when it stated no reimbursement if we don’t vote for it.

It’s really dissapointing that only two people decided (if its true) to put this proposal up.

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I loved one :man_facepalming: Now I’m out sucks hearts my heart, I believed in em

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The quiet and silence from li and tse deafening .

If they manage the company in a top down way, then come and address us . Stop hiding !

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what do you mean by
" and wallets that opportunistically bought" ??
He who wrote this needs to be fired. This deeply hurts me as an investor who spent more than $3000 to buy ONE tokens all the way down to 0.017 and bear a -96%. And now after a bear market of > -75% on crypto, with luna incident and many rugs on harmony ecosystem, you are saying that my ONE tokens, even though they are higher in number than before, will have even less value? I guess this is called PONZI.
You sold at the top, you created this hack and now you will fund your fake wallets with more ONE tokens minted out of thin air or basically out of our money to make more profit as all whale wallets will dump the fake “reimbursement”.

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