Harmony Rachael here, aka The Harmony Savior, aka The100MillyFilly.
The major pitfall with every proposal up until now has usually revolved around the unappealing consequences associated with printing a shit tonne of ONE token over a very brief time period. The problem with this is that if you’re a ONE token holder you’re being made to foot the bill to resolve a problem that you may not even be impacted by. Why on Earth would you vote for a proposal that hinders your bags massively to save someone else’s? Game theory would dictate that no rational thinker would choose such a strategy. Every proposal that involves such dilution is one that is destined to fail from the outset.
TL;DR, (please read though - also might be worth taking a quick look at MOBOX ecosystem to have a good idea of what my vision is)
- Harmony/community uses treasury funds to build out gamefi suite
- Custodians of unpegged assets have exclusive ability to stake assets to farm keys/NFTs
- Farming period is temporary and ends when assets repegged
- Proposal to be used in conjunction with other obvious funding methods: redirecting burnt tx fees, validator rewards, buy back/burn of unpegged assets.
Benefits of this proposal
1. Provides the team with the ability to prolong the period needed to raise sufficient funds to repeg the assets officially - keeping custodians of unpegged assets reasonably happy in the meantime. There is also the potential for there to be no repeg necessary at all if product is built well enough.
2. Unpegged asset holders encouraged to stay engaged with the community and don’t jump ship the moment their assets are repegged.
3. Treasury funds utilised in a much more productive way. Rather than outright buying assets- Harmony ecosystem instead derives utility from gamefi suite eternally.
4. Provides utility to unpegged assets - meaning there is a chance the unpegged assets, rather than repeg value in a traditional sense, may begin to mirror value as farming weights directly correlated with $ values (as if they were true to peg). There is even a chance the assets become overpegged i.e. the utility derived from exclusive access to farming NFTs is believed to be more valuable than assets pegged equivalent.
5. If we decide unpegged assets are to be staked in LP format (x unpegged asset/one) then we may provide the opportunity for the team to buy/burn discounted unpegged assets. This would allow the team to buy in more significant size with much lower price impacts than other existing LPs across other protocols. Meaning the team would need significantly less than $100m to back assets on the ETH side.
6. Allows for temporary distinction between bridged assets on the Harmony chain. I.e. legacy (hacked assets) can be kept separate from newly bridged (trustlessly I hope) assets until the time comes to remerge assets when legacy assets can be fully backed once again. This means the rest of the Harmony ecosystem can continue to operate, as if nothing happened, once the trustless bridge is up and running.
So where does that leave us? We need a proposal that repegs the $100m hole whilst keeping ONE holders on board.
We need to create utility for the unpegged assets. What I am proposing is for the Harmony team (could also be community initiative) to build out a suite of games similar to that of the ecosystem built of by the Mobox team on BNBchain. I understand the Harmony team are reluctant to use the treasury funds to directly reimburse the funds lost in the horizon bridge hack, but this solution would provide a way to use treasury funds in a much more productive way. A way that can potentially plug the $100m whilst also creating a vast amount of utility for the harmony community at the same time.
What is Mobox and how do the unpegged assets fit into the equation?
Simply put, Mobox is a gamefi ecosystem whereby players could stake assets (single asset or staked in an LP) in order to earn keys. These keys would open chests to unlock NFTs that could be used across their suite of mobile games. These mobile games would utilise these NFTs as well as consume ONE token itself on in-game upgrades. These games would be seasonal competitions in nature whereby most progress within the games would reset weekly, fortnightly, or monthly (depending on the game you were playing).
What I propose is that we build a similar ecosystem making use of the unpegged assets. We would follow a similar roadmap in which we would allow unpegged asset custodians to be the exclusive liquidity providers. This means that only those who staked unpegged assets could farm the keys to unlock the NFTs to the gamefi ecosystem. Key farmers could sell their keys/open chests and subsequently sell their NFTs if they so desired. We would of course run this farming period for as long as necessary. I.e. the amount of time needed to raise funds to fully repeg the $100m problem.
Why is Harmony uniquely positioned to overcome traditional gamefi ‘Ponzinomics’?
The problem you find with most gamefi ecosystems, including Mobox, is that they do not create their own value and rely entirely on the minting of new tokens to keep players incentivised to compete with one another. Those that have committed to limited supply models and do not create value are constrained in their ability to incentivise players for the long term and are therefore doomed to fail (hence ponzinomics).
Harmony is uniquely positioned in that it is its own stand-alone blockchain - meaning you require the token for multiple other reasons. Most notably to pay for tx fees. In addition to this Harmony tokenomics are such that they are ever inflating. We could redirect x amount of new supply from validator rewards and commit them to gaming rewards. This way the games can remain eternally competitive for as long as the chain has active users.
This is not a post to iron out all the gamefi details right now. Rather a repeg post that stresses the need to utilise unpegged assets temporarily for us to buy enough time to slowly raise funds to repeg. In doing so we also use the treasury funds in a much more productive way. Whilst also offering the more impatient a chance to cash out at potentially higher prices than the current ~0.1:1. Maybe if the gamefi development looks appealing enough, owners of the unpegged assets may be able to cash out for more than 1:1 (one can only dream).
To play devil’s advocate, if the Harmony team builds out an epic product then it could be the case that the repeg may not even be necessary. Providing the farming period for unpegged asset holders is deemed to be fruitful enough on its own.
The promise of an eventual peg whilst following this proposal however would of course be the most ideal outcome for the users.
I would love to hear all feedback. Good or bad, but please try to keep it as constructive as possible.
If I’m not on boarded to see out my vision and this proposal does go ahead then please consider leaving a donation - unpegged assets welcome. How else am I going to farm keys and NFTs?