Harmony Recovery: Round 7
Summary of Funding Round 7
In April 2023, the Harmony Blockchain Recovery process demonstrated significant progress in efficiency. The Harmony treasury issued a total of $120,000 in ONE and USDC to three “burn partners” in equal increments. These partners consisted of Modulo, Tranquil Finance, and Recovery One (R1), who have continued their efforts to remove depegged 1Assets resulting from the Horizon Bridge hack in June 2022. This article presents a concise overview of the results from Funding Round 7.
In the recent funding round, there was a noticeable correlation between the increased efficiency and price movement of Horizon Bridge-affected assets, which began around April 17th, 2023. Round 7 marked a significant milestone in the recovery process as a total of $1,266,861 worth of assets were removed, which is an increase compared to the last three rounds.
In Round 7, the three burn partners managed to burn $1,266,861.40 of 1Assets, a considerable increase in efficiency compared to $1,163,884 in Round 6 and $888k in Round 5. The individual breakdown of the burn partners is as follows:
- Modulo introduced v5 of their Dutch auction, implementing upgrades to the contract that support most assets and included a verification to identify users as not being smart contract bots. With a burn rate of 0.0709, Modulo burned a total of $564,174.40 in Round 7, bringing the overall burned amount to $3,522,980.21 to date.
- Tranquil Finance burned $308,360 in 1Assets in Round 7 through open market purchases and burn and allocated $20,000 to remove “bad debt” from their lending platform. The community eagerly anticipates the release of Tranquil v2, an upgraded version of their platform. Tranquil’s total amount burned at this time is $2,552,646!
- Recovery One, on April 11th, R1 unveiled the Recovery Exchange V2, an entirely new platform designed and deployed in under three weeks. In Round 7, the exchange burned $394,327 in 1Assets offering the best price for participants. Eager to refine the Recovery Exchange V2, R1 plans to incorporate feedback from both the community and the Harmony core team for Round 8. With additional time to build, the team aims to implement a two-stage whitelist process. The maximum wallet limit will be set at $300. During the first 24 hours, only R1 voters will be permitted to participate. After this period, the whitelist will expand to include depegged wallet addresses and details on this will be released shortly. After 7 days, the maximum wallet limit will be raised to $600. The code for this process will be fully open-sourced. Our main focus for this round is to increase the number of participants, the number of transactions, and to extend the participation period for a longer duration. To date, R1 has burned $2,754,327 through both Recovery Exchange V1 & V2. In Round 7, the recovery team helped with multiple initiatives, the first being a request from Harmony to establish a hub for recovery updates and spearhead communication efforts to connect with the AAVE team and community to find a mutually beneficial solution. As a result, Recoveryone.country was created, and the team received 13 community submissions and one submission from the AAVE team to integrate AAVE-affected users into the recovery process. These submissions were posted on the AAVE forum. R1 also remains actively involved in supporting the upcoming Tranq V2 governance framework and its working with the Tranquil leadership team.
As of the conclusion of Round 7 in April, the Harmony Treasury had allocated a grand total of $930,000 across six rounds to its three burning partners. In total, an impressive $8,829,953.21 worth of 1Assets had been burned, with 100k going to Tranquil’s “bad debt” showcasing the efficiency, determination, and progress of the Harmony Blockchain Recovery process. This accomplishment highlights the steadfast commitment of the Harmony community and its burn partners in tackling the challenges resulting from the Horizon Bridge hack. As stated in the Harmony Recovery: Round 1 Summary, there are various actors and goals within the recovery process that are worthy of discussing and reviewing and we will continue to do so.
While the core team continues to enhance the network and grow partnerships, the recovery partners remain steadfast in their focus and eagerly await feedback from the community. The Harmony Foundation’s input and involvement are crucial in addressing reimbursement and participation matters effectively. The recovery partners are committed to incorporating feedback and suggestions to improve their burn mechanism, further strengthening of the Harmony ecosystem.
We anticipate the commencement of Round 8 during the first or second week of May.
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In the upcoming days, Hound Validator will provide an update on the progress of the burning validators in Round 7. The five validators include Burning Validator, EasyNode, Repegging Node, Tracker, and Recovery Validator.
