View source for Harmony (ONE)

From a commissioned [[Messari]] [https://messari.io/report/state-of-harmony-q4-2022 report] (8-2-2023):

''Harmony is an [[Ethereum Virtual Machine (EVM)]]-compatible, Effective Proof-of-Stake (EPoS) [[Smart Contract (SC)|smart contract]] platform for [[Decentralized Applications (DApps)|decentralized applications]]. It uses the Fast Byzantine Fault Tolerance (FBFT) consensus mechanism and a random state [[sharding]] technique that separates a chain into segments. Each segment processes transactions and stores data in parallel, thus increasing transaction throughput and speed. Harmony also utilizes a Verifiable Random Function (VRF) and Verifiable Delay Function (VDF) to ensure secured randomness when [[validators]] are assigned to shards, preventing the possibility of a “single shard attack.” Harmony achieves 2-second [[Transaction (Tx)|transaction]] [[finality]] across four shards.''

== Basics ==
* Based in:
*Started in: 2018
* [[Mainnet]] release: [https://www.prnewswire.com/news-releases/harmony-launches-staking-becomes-the-first-sharded-proof-of-stake-blockchain-to-go-live-301062029.html 19-5-2020]
*The Harmony [[mainnet]] [https://www.prnewswire.com/news-releases/harmony-launches-staking-becomes-the-first-sharded-proof-of-stake-blockchain-to-go-live-301062029.html claims] (19-5-2020) to be the first blockchain network to integrate both [[sharding]] and [[staking]] into its infrastructure.
* From [https://medium.com/harmony-one/harmony-to-partner-with-chainlink-for-off-chain-connectivity-fc0372819aca this blog post] (6-2019) in which it shows it is not shy of using buzz words:
"''We are designing a high throughput, low [[latency]], fully secure [[blockchain]] network. It uses an innovative [[sharding]] technique called Deep Sharding where the layer on which [[consensus]] happens is also [[sharded]] along with the [[transaction]] layer, to magnify network throughput. The beacon chain, along with the shard chains, improves both the security and the scalability of the network. A host of other such features together guarantee that Harmony will be the blockchain of the future, providing connectivity for billions of people."''
== History ==

*[https://medium.com/momentum6/for-one-and-for-all-harmony-ecosystem-overview-d974e8e2d6f2 From] [[Medium]] (11-2021):

''"Stephen Tse founded Harmony in 2018, but the protocol became live in 2019. Stephen Tse is an experienced engineer in cryptographic protocols, and his aim was to provide a [[decentralized]], open and trustless blockchain platform for [[DeFi]] users globally. Tse involved 20 other members in creating the project, whose experience was diverse in areas such as machine learning, software development, artificial intelligence, blockchain technology and virtual reality. The team held consistent meetups in San Francisco, and with time the project started to gain the interest of multiple investors. Harmony raised over $18 million in funding during its fundraising round in 2019."''

*From their [https://docs.harmony.one/home/general/introduction/what-is-harmony docs] (5-2021):

''"Harmony is the beautiful music when we sing in different notes but resonate. It’s analogous to our high-performance protocol of multiple shards but reaching consensus."''

*[https://www.coindesk.com/harmony-kicks-off-migration-from-ethereum-and-binance-chains-to-its-own From] [[CoinDesk]] (24-1-2020):

''"Harmony kicks off migration from [[Ethereum]] and [[Binance]] Chains to its own. Holders of the ONE [[token]] should swap their [[ERC-20]] (ethereum) or BEP-2 ([[Binance Chain|binance chain]]) [[tokens]] for the [[COIN|coin]] on Harmony's blockchain if they want to be able to participate in [[staking]] and other network activities. ''

''Unlike some prior token [[swaps]], such as [[EOS]], there's not a way for users to manually conduct the swap. Holders of either of the tokens will need to load them onto an exchange participating in a [[bridge]] with Harmony. Once on such an exchange, the tokens can then be withdrawn, but they will only return as the ONE [[native coin]]."''

== Audits & Exploits ==

*[[Bug bounty]] program can be found [https://github.com/harmony-one/bounties/issues here].
*The Horizon bridge is [https://blog.peckshield.com/ audited] and approved by [[Peckshield]] Inc. Still got hacked as can be read below.

=== Bugs/exploits ===

* The FBI [https://www.fbi.gov/news/press-releases/fbi-confirms-lazarus-group-apt38-cyber-actors-responsible-for-harmonys-horizon-bridge-currency-theft announced] (24-1-2023) it has concluded that North Korean hacker organization [[Lazarus Group]] was behind the $100 million hack of Harmony Protocol. 
*Harmony [https://twitter.com/theblock__/status/1552428316820492289 proposes] minting billions of ONE tokens to pay back hack victims, but the community seems to be against (28-7-2022). After near-universal condemnation, leaders of the Harmony blockchain [https://talk.harmony.one/t/reimbursement-proposal-horizon-incident/20665/225 scrapped] (10-8-2022) their proposal to reimburse community members who lost money in a $100M hack in June.
*[https://twitter.com/harmonyprotocol/status/1540110924400324608 From] their [[Twitter]] (24-6-2022):
''"The Harmony team has identified a theft occurring this morning on the Horizon bridge amounting to approx. $100MM. We have begun working with national authorities and forensic specialists to identify the culprit and retrieve the stolen funds. Note this does not impact the trustless BTC bridge; its funds and assets stored on decentralized vaults are safe at this time."''

The hack had been [https://twitter.com/_apedev/status/1510007663832223751?s=20&t=wJ2FrmeR3pkazcYlKZWa7w prophesized] back in April, due to its 2-out-of-4 [[Multi-Signature|multisig]]. 
*[https://twitter.com/harmonyprotocol/status/1482066465948053504?s=21 From] their Twitter (18-1-2022):

''"We are undergoing an outage due to multiple [[block]] propagation issues. Heavy spam traffic in the past 30 hours has halted the network."''

== Governance ==

* [https://thedefiant.io/harmony-validators-decry-problems?utm_source=substack&utm_medium=email From] [[The Defiant]] (10-8-2022):

''"Interviews with Harmony [[Node|validators]] paint a picture of a community that was dysfunctional well before hackers made off with the $100M and leaders reacted with a “slap in the face” solution. The validators say Harmony has been slow to communicate, if at all; reluctant to address consolidation among validators; broken promises regarding funding of partner organizations; and shown little interest in fixing a broken governance system that has made it impossible to gauge community support for proposals to address important issues within the network.''

''Harmony leadership did not respond to a request for comment for this story."''
* From their [https://docs.harmony.one/home/network/governance/network-governance docs] (4-2021):

''"Harmony Network [[Governance]] voting is currently available via Harmony Governance App and [https://docs.harmony.one/home/network/wallets/harmony-cli HMY CLI]. As with other projects and networks, the decisions should be made by the community, or in this case, the [[Node|validators]], on what upgrades, incentives or changes we should make for the Harmony network so that it becomes even more attractive to community [[validators]] and participants.''

''As the network and core protocol are  complicated and require a deep knowledge of EPoS and some technical/blockchain background, we are only letting validators create and vote on proposals. The network governance model includes proposal, voting, and implementation processes.''

''First, a proposal has to be submitted by an elected [[validator]]. The proposal shall include a summary in the content and a [[LINK|link]] to a post in the “Governance” section of the [https://talk.harmony.one/ forum] that the community can discuss and debate in the forum post. A proposal will be moved forward when the majority is reached. Otherwise, it is rejected. The majority of the [[quorum]] is defined as more than 66% of all the [[Proof-of-Stake (PoS)|staked]] tokens.''

''Since only the validators can propose/vote in the proposal, for token holders who delegate to validators, it is highly encouraged to work with your validators to vote on the proposals. Also, in order to encourage the participation of the voting process, additional token rewards may be [[distributed]] to validators who voted in the proposals. The detailed plan will be announced later."''
===Admin Key===

* Although the above text from the docs seems to say it is governed by the validators, however there is also a section talking about [[Multi-sig]] holders who are "supporting Harmony's ecosystem" (4-2021). Holders [https://docs.harmony.one/home/network/governance/multi-sig mentioned] are:

[[Altonomy]], [[Anmi Capital]], [[Cluster Capital]], [[KysenPool Dragon]], [[Youbi Capital]] and [[Jeff Liu]].

===DAO===
===Treasury===

* From a commissioned [[Messari]] [https://messari.io/report/state-of-harmony-q4-2022 report] (8-2-2023):

''"In October 2022, the Harmony community/team put forward discussions for the [https://messari.io/intel/event/5539e3d0-b08e-4b66-a342-353254ff0840?assetSlug=harmony&from=asset Harmony Improvement Proposal (HIP) - 28], which was still open heading into 2023. It proposed a [[Hard Fork|hard fork]] to route all protocol revenues to the treasury. The proposal aimed to provide a reserve cushion to help sustain infrastructure expenditures to maintain normal protocol operations. These expenses include Harmony’s Elastic RPC, [[Oracle]], [[Multi-Signature|multisig]], [[Block Explorer|block explorer]], and more."''
* From a commissioned Messari [https://messari.io/report/state-of-harmony-q3-2022 report] (19-10-2022):

''"Harmony’s core team recently committed to 0% minting to prevent token dilution by using funds from the Harmony treasury to facilitate the recovery process. In October, the team will allocate funds on an ongoing basis starting to strategic partners, using burning mechanisms to remove depegged assets from circulation."''

== Token ==
=== Launch ===

* [https://www.coindesk.com/harmony-kicks-off-migration-from-ethereum-and-binance-chains-to-its-own From] [[CoinDesk]] (24-1-2020):

"''Harmony had a [[premine|pre-mine]] of 12.6 billion ONE tokens issued on the ethereum and binance chains, 36.9 percent of which was sold in the [[seed]] and launchpad sale."''

=== Token allocation ===
=== Utility ===

* Staking, governance, and [https://docs.harmony.one/home/network/governance/network-governance participating] in governance also will reward you, but this is not live yet (4-2021).

=== Token Details ===

==== HRC-20 Tokens ====

* From their [https://docs.harmony.one/home/network/governance/hrc-20-governance docs] (4-2021):

''"HRC-20 are [[fungible]] tokens minted on the Harmony network, much like [[ERC20 tokens|ERC-20 tokens]] are on [[Ethereum (ETH)|Ethereum]]. Functionality wise, the HRC-20 is similar to [[ERC-20 tokens]] like [[US Dollar Coin (USDC)|USDC]], [[Uniswap (UNI)|UNI]], [[SushiSwap (SUSHI)|SUSHI]], etc., except that it is issued and used on the Harmony network, instead of on the Ethereum network."'' 

=== Stablecoin ===
== Coin Distribution ==
== Tech ==

* [[Whitepaper]] can be found [https://harmony.one/whitepaper.pdf here].
* Code can be viewed [https://harmony.one/github here].
* Programming language used:
=== Transaction Details ===
* Capacity ([[TPS]]):
* [[Latency]]: [https://www.prnewswire.com/news-releases/harmony-launches-staking-becomes-the-first-sharded-proof-of-stake-blockchain-to-go-live-301062029.html 8 seconds], ''"producing [[Block|blocks]] in [https://docs.harmony.one/home/general/introduction/what-is-harmony 2 seconds] with [[finality]].''" (5-2021).

=== How it works ===

* <span class="s1"></span>4-shard network
* Harmony's network [https://www.prnewswire.com/news-releases/harmony-launches-staking-becomes-the-first-sharded-proof-of-stake-blockchain-to-go-live-301062029.html consists] (19-5-2020) of over 320 public [[nodes]] and Harmony plans to increase that number to 1000 and beyond by the end of the year.
*From this [[mainnet]] announcement (19-5-2020):<span class="s1"></span>

"''[[Proof-of-stake]]'' ''blockchains have been criticized for "rich get richer" economics, in which the largest [[stakers]] [[earn]] the most. Harmony's novel staking mechanism called "Effective Proof of [[Stake]]" counters this problem by capping the rewards of large stakers and boosting the rewards of smaller ones."''

* From their [https://docs.harmony.one/home/general/introduction/what-is-harmony docs] (5-2021):

''"Our Effective [[Proof-of-Stake]] (EPoS) reduces [[Centralized|centralization]] while supporting stake delegation, reward compounding and double-sign [[slashing]]. The randomness used in the sharding is obtained with a distributed randomness generation algorithm (based on VRF and VDF) which is unpredictable, un-biased, verifiable and scalable. Harmony reshards the network in a non-interruptive manner using “Cuckoo Rule” to prevent against slowly adaptive byzantine adversaries.''

''Harmony’s [[Consensus Algorithm|consensus algorithm]] is called Fast [[Byzantine Fault]] Tolerance or FBFT. FBFT is a highly efficient and speedy [[consensus algorithm]] built upon the famous [[PBFT]] (Practical Byzantine Fault Tolerance) algorithm which is the cornerstone for distributed systems and consensus research for the past 30 years. Harmony’s FBFT is able to confirm [[blocks]] within 2 seconds thanks to the adoption of aggregated BLS (Boneh–Lynn–Shacham) [[signature]]. FBFT is also highly optimized in network message processing and block proposal pipelining so that the consensus can scale to hundreds of validators at the same time.''

''The process to elect validators is called Effective Proof-of-Stake (EPoS) which is the first sharding-focused PoS mechanism that prevents stake [[centralization]]. In EPoS, validators with a large amount of [[staked]] tokens are obligated to run more nodes to support the network while validators with less stake run fewer nodes. Besides, EPoS is able to randomly and evenly distribute the stakes among all shards so no shard is less secure than other shards.''

''Harmony’s [[Network Layer|network layer]] is based on the industry-leading p2p protocol named libp2p. We use libp2p’s gossip protocol for network message broadcasting and stream protocol for decentralized [[state]] synchronization. To achieve high performance, we adopt RaptorQ fountain code and use Adaptive Information Dispersal Algorithm to quickly and efficiently broadcast large blocks. Harmony also features a design where Kademlia routing is used to achieve cross-shard transactions that scale logarithmically with the number of shards."''

* [https://medium.com/momentum6/for-one-and-for-all-harmony-ecosystem-overview-d974e8e2d6f2 From] [[Medium]] (11-2021):

''"Cross-shard communication is a tech feature that reduces the degree and number of complexities that emerge while running the communication protocol on the platform. Kademlia is a distributed [[hash]] table and routing protocol that the system relies on. The concept facilitates the communication system within shards as it enables nodes within a shard to receive and send information within themselves through a shard ID. The approach eliminates the need to broadcast information across other shards."''

=== Fees ===

=== Upgrades ===

=== Staking ===

* From a commissioned [[Messari]] [https://messari.io/report/state-of-harmony-q4-2022 report] (8-2-2023):

''"Harmony uses a unique staking mechanism called Effective Proof-of-Stake (EPoS). Staking rewards are based on the effective median stake of validators. The validators’ rewards are capped by this mechanism, incentivizing them to spin up a new validator to maximize rewards. The mechanism is designed to promote further decentralization and to prevent “overstaking.” In turn, delegators are encouraged to delegate to validators below the median stake to capture optimal rewards.''

''Validators are required to stake the effective median amount to be eligible for election. In Q4, the effective median amount staked grew by 16%, from 5.0 million to 5.9 million ONE. This would require validators to increase their effective median stake to be eligible for election. The additional 900,000 ONE needed would equate to roughly ~$14,000 for a validator who is short of stake.''

''The Q4 decline in elected validators from 156 to 151, or a 3% decline, is likely a result of validators becoming ineligible due to median staking requirements or validators shutting down operations. Harmony’s staking yields fell from 8.28% in Q3 to their lowest, 7.51%, in Q4."''
* [https://thedefiant.io/harmony-validators-decry-problems?utm_source=substack&utm_medium=email From] [[The Defiant]] (10-8-2022):

"[Has] 900 available [[validator]] slots."

* [https://medium.com/momentum6/for-one-and-for-all-harmony-ecosystem-overview-d974e8e2d6f2 From] [[Medium]] (11-2021):

''"Need to stake a minimum of 10,000 $ONE tokens. The fact that all $ONE tokens earned through transaction [[fees]] are burnt is what sets Harmony apart from other Layer 1s. Zero token inflation is brought about by high network usage. The mechanism of issue-and-[[burn]] [[tokenomics]] that rewards a growing network by reducing inflation ultimately increases the intrinsic value of $ONE token."''

==== Validator Stats ====

* From a commissioned [[Messari]] [https://messari.io/report/state-of-harmony-q3-2022 report] (19-10-2022):
''"Harmony’s average number of elected validators and delegators was down slightly (-2%) QoQ, seeing levels from Q4 2021. However, there was a period of 12 days in July where daily elected validators fell below 150 before stabilizing thereafter."''
*There is shard 0, shard 1, shard 2, and shard 3 that support 250 validators each ([https://medium.com/momentum6/for-one-and-for-all-harmony-ecosystem-overview-d974e8e2d6f2 11-2021]). About 42% of $ONE tokens are currently staked.
*From their [https://docs.harmony.one/home/general/introduction/what-is-harmony docs] (5-2021):

''"There are now 1,000 Harmony nodes – so far 640 of them run by the community."''

*[https://www.coindesk.com/harmony-kicks-off-migration-from-ethereum-and-binance-chains-to-its-own From] [[CoinDesk]] (24-1-2020):

''"The Harmony network is live now, though not all the features are. For example, validating [[nodes]] remain [[permissioned]], but this will eventually become open. Validators will be rewarded with new ONE tokens in reward for securing the network, under Harmony's [[proof-of-stake]] system."''

*[[Figment]] is a [[staker]]. From their website (9-3-2020): ''"Operating multiple investor nodes since network launch. [[Genesis Block|Genesis block]] producer. Serving [[MANY|many]] of Harmony’s original VC investors."''
*[[Blockdaemon]] and [[Stake.fish]] are too.

=== Liquidity Mining ===

=== Scaling ===

=== Interoperability ===

* Has [[EVM]] compatibility

* <span class="s1"></span>From their [https://medium.com/harmony-one/sushiswap-on-harmony-protocol-9e537d01489a blog] (7-4-2021):

''"Harmony is a [[sharding]] protocol with a [[trustless]] Ethereum bridge. A [[cross-chain]] [[Uniswap]] port is already live on our [[MainNet|mainnet]]. Similar to [[layer 2]] protocols, Harmony is now fully interoperable with the Ethereum ecosystem."''

==== Horizon ====

* [https://bridge.harmony.one/ Horizon] is a cross-chain bridge that allows exchange of crypto assets (e.g., fungible/non-fungible tokens, [[stablecoins]]) between Ethereum, [[Binance Smart Chain]] and Harmony blockchains
* The Horizon bridge is [https://blog.peckshield.com/ audited] and approved by [[Peckshield]] Inc.
* Horizon [https://github.com/harmony-one/ethhmy-bridge code] is [[Open Source|open source]].

* Looking in other [https://medium.com/harmony-one/harmony-as-interoperable-layer-2-for-ethereum-47c10c9b68c8 blog](6-2-2021) posts, it seems they just have [[Smart Contract (SC)|SC]] on both chains as any other bridge, however how they connect is done through a Harmony [[Node|light client]] deployed as a SC on Ethereum which connects through [[Relays|relayers]]:

''“Harmony deploys a light [[client]] [[Smart Contract (SC)|smart contract]] on Ethereum which will [[keep]] track of what is going on in the Harmony chain. This light client is kept up-to-date by any [[relayer]] that [[relays]] the [[Block Header|block header]] information at every checkpoint.''

''The user withdrawal process is as follows:''

# ''Execute burn transaction''
# ''[[Compute]] or obtain [[Proof of Burn|proof of burn]]''
# ''Wait for the relayer to send the next checkpoint block [[header]] info to Harmony light client on Ethereum. Self [[relay]] is also possible with some extra cost to further speed up the withdrawal.''
# ''Submit the proof of burn to bridge smart [[contract]] on Ethereum to successfully withdraw.”''

In blog they also [https://medium.com/harmony-one/harmonys-strategy-and-architecture-c1d85e236f04 write] (14-1-2021):

''“Inspired by Flyclient (already deployed in [[ZCash (ZEC)|ZCash]]), our light client uses [[Merkle Mountain Range (MMR)]] and epoch syncing. Later we may employ [[Zero-Knowledge Proofs|zero-knowledge proofs]] such as [[PLONK|Plonk]] to further compress the states of these heterogeneous chains.”''

* For more details the [[whitepaper]] and tldr can be read [https://medium.com/harmony-one/horizon-a-gas-efficient-trustless-bridge-for-cross-chain-transactions-e791296ab43c here] (14-11-2020).

=== Other Details ===

== Oracle Method ==

* <span class="s1"></span>Harmony has integrated (1-10-2020) [[Band Protocol]] and dedicated a portion of the $7M Grants Program towards Band Protocol. However, it backtracked two days later and said [[Chainlink]] was the [[oracle]] of choice (3-10-2020). [[ChainLink|Chainlink]] is [https://thedefiant.io/harmony-300m-ecosystem/ still] only on [[testnet]] (9-9-2021). Chainlink price feeds went [https://medium.com/harmony-one/chainlink-price-feeds-running-live-on-harmony-mainnet-empowering-developers-building-defi-apps-4ddcd2208af9 live] (14-12-2021).
== Their Other Projects ==
=== Horizon ===

*[https://bridge.harmony.one/ Horizon] is a cross-chain bridge that allows exchange of crypto assets (e.g., fungible/non-fungible tokens, stablecoins) between Ethereum, Binance Smart Chain and Harmony blockchains.

=== SWOOP ===

* [https://swoop.exchange/ SWOOP] is a [[Decentralized Exchange (DEX)|decentralized exchange (DEX)]] for swapping assets [[bridged]] from Ethereum (13-11-2020). 

== Roadmap ==

* <span class="s1"></span>On January 5, Harmony [https://medium.com/harmony-one/harmony-protocol-development-priorities-for-q1-27b1c5a22255 detailed] the main priorities for 2023. The team will focus on State Pruning, Cross Shard transactions, Light Clients, Leader Rotation, and more efficient State Syncing.
*
*<span class="s1"></span>Updates can be found in [https://messari.io/report/state-of-harmony-q3-2022 this] commissioned [[Messari]] report (19-10-2022).
*<span class="s1"></span>Can be found [https://docs.harmony.one/home/general/introduction/roadmap here] (5-2020):

''"Our main themes are:''

# ''Adoption — We are bringing utility to users through developers and partners. Hackathons with [[Gitcoin]] and workshops at [[Ethereum (ETH)|Ethereum]] events will boost our reach.''
# ''Interoperability — We are bridging with [[Bitcoin (BTC)|Bitcoin]] and Ethereum for broader assets. Our cross-shard and cross-chain transactions will enable new finance applications.''
# ''[[Decentralized|Decentralization]] — We are growing our validator community and network features. External voting power and resharding will guarantee our long-term governance."''

*<span class="s1"></span>From this [[mainnet]] announcement (19-5-2020):

"''Now that the core protocol work is complete, Harmony will shift focus to solving a potentially harder challenge: adoption. Harmony's [[EVM]] compatibility makes it easy for developers in the [[Ethereum]] ecosystem to test out the new network. In addition to the protocol's features, a comprehensive set of developer grants are planned to encourage developers to take the leap."''

== Revenue ==

* From a commissioned [[Messari]] [https://messari.io/report/state-of-harmony-q4-2022 report] (8-2-2023):

''"During the days of heightened activity with DFK earlier in the year, Harmony was generating, on average, $3,300 in daily revenue in Q1. The second quarter saw average daily revenues fall 59% to $1,300. By the second half of 2022, average daily revenues were less than a few hundred dollars daily. The decline in network activity in H2 2022, compounded with consistent price depreciation, put significant downward pressure on revenue generation."''

== Usage ==

*From a commissioned [[Messari]] [https://messari.io/report/state-of-harmony-q4-2022 report] (8-2-2023):
''"On average, there were 3,800 daily active users in Q4, or 68% less than the 12,000 users in Q3. This starkly contrasts with the nearly 26,000 average daily active users during Harmony’s peak at the end of 2021. Since DFK’s departure in late April, the number of active users has steadily declined."''
*From a commissioned Messari [https://messari.io/report/state-of-harmony-q3-2022 report] (19-10-2022):
''"Harmony’s network usage and overall financial performance also declined for the second quarter, in line with the broader market. However, this quarter’s decline was catalyzed by the Horizon Bridge hack that occurred on June 23, 2022. This incident resulted in the bridge being drained of $100 million in assets from the Ethereum and BNB chains, ultimately depegging bridged (ONE) assets. This breach only exacerbated the decrease in network activity following [[DeFi Kingdom (JEWEL)|DeFi Kingdom]]’s decision to launch on an [[Avalanche (AVAX)|Avalanche]] subnet in Q2.''

''Daily user metrics were at their lowest in 12 months, down 87% from their peak in Q1 2022. Similarly, daily transactions were down 88% from their peak in Q4 2021. Despite the culmination of events, the circulating market cap grew (8.4%) for the first time this year during Q3. Harmony’s average number of elected validators and delegators was down slightly (-2%) QoQ, seeing levels from Q4 2021. However, there was a period of 12 days in July where daily elected validators fell below 150 before stabilizing thereafter."''
*[https://ournetwork.substack.com/p/ournetwork-issue-98?token=eyJ1c2VyX2lkIjoxMzk3OTAwLCJwb3N0X2lkIjo0NDI5NTk2NCwiXyI6IjNtM29qIiwiaWF0IjoxNjM4NTAyNjgyLCJleHAiOjE2Mzg1MDYyODIsImlzcyI6InB1Yi0yMTM2MiIsInN1YiI6InBvc3QtcmVhY3Rpb24ifQ.d26FXQc8fYSSJapqSeYyalrAFSCM From] [[Our Network]] (20-11-2021):

''"In a span of three months DFK's player base has grown from under 1k to 41k — including $904 million in total transaction volume and $2.12 billion in assets. Thanks to DFK's recent success, TVL on Harmony (including staked tokens) hit record highs of $550 million earlier this week. DFK's TVL, which grew by 47% to $310 million in the past week, now accounts for 55.19% of Harmony's TVL. For comparison, [[SushiSwap]] is the next largest protocol at $95 million TVL."''

*<span class="s1"></span>From their [https://medium.com/harmony-one/sushiswap-on-harmony-protocol-9e537d01489a blog] (7-4-2021):<span class="s1"></span>

''"Since the launch of the Harmony to Ethereum Bridge, [[smart contract]] activity on Harmony has ballooned, with [[transactions]] booming from a cumulative amount of 230,643 when the bridge launched on October 19 to 1,580,021 on April 5, 2021, representing a 585% increase!''

''Equally impressive is the growth of new [[wallets]] on Harmony since the launch of the bridge. At launch of the bridge, we had 18,649 active [[wallet]] [[addresses]] (defined as a wallet with at least 1 ONE token in it). As of April 5, 2021 we have 55,163 active wallet addresses, representing 195% increase in wallet addresses!"''

=== Projects that use or built on it ===

* [https://thedefiant.io/harmony-300m-ecosystem/ From] [[The Defiant]] (9-9-2021):

''"Some [[Decentralized Finance (DeFi)|DeFi]] projects have been quietly expanding onto Harmony in recent months. [[SushiSwap (SUSHI)|SushiSwap]] opened up on Harmony in April. The semi-algorithmic [[stablecoin]] [[Frax Finance (FRAX)|Frax]] moved some of its supply onto Harmony, primarily via a SushiSwap [[liquidity]] pool. [[Chainlink (LINK)|Chainlink]] runs its price feeds on the Harmony [[TestNet|testnet]], a prelude to moving to mainnet, as the oracle prodiver did in August on [[Solana (SOL)|Solana]]."''

* [[SushiSwap (SUSHI)|SushiSwap]]; live (7-4-2021).

== Pros and Cons ==
=== Pros ===
=== Cons ===

* [https://thedefiant.io/harmony-validators-decry-problems?utm_source=substack&utm_medium=email From] [[The Defiant]] (10-8-2022):

''"Interviews with Harmony [[Node|validators]] paint a picture of a community that was dysfunctional well before hackers made off with the $100M and leaders reacted with a “slap in the face” solution. The validators say Harmony has been slow to communicate, if at all; reluctant to address consolidation among validators; broken promises regarding funding of partner organizations; and shown little interest in fixing a broken governance system that has made it impossible to gauge community support for proposals to address important issues within the network.''

''Harmony leadership did not respond to a request for comment for this story."''

== Competition ==

* [[Layer One|Layer 1]] [[blockchains]].

* From their [https://medium.com/harmony-one/harmonys-strategy-and-architecture-c1d85e236f04 blog] (14-1-2021):

''"Harmony’s shards are similar to [[Cosmos (ATOM)|Cosmos’s]] zones and [[Polkadot (DOT)|Polkadot’s]] parachains, but our shards offer simpler interface and more uniform security for developers. We are developing cross-shard transactions, comparable to Cosmos’s [[IBC (Inter-Blockchain Communication)|Inter-Blockchain Communication (IBC)]] and Polkadot’s Cross-Chain Message Passing (XMCP) but specialized for uniform shards."''

* 

== Team, funding, partners ==

=== Team ===
* Full team can be seen [https://www.harmony.one/#Ecosystem here] (14-5-2021).
*[[Nick White]]; Co-Founder (now in the external team, 14-5-2021)
* Stephen Tse; CEO 
*[https://thedefiant.io/harmony-validators-decry-problems?utm_source=substack&utm_medium=email From] [[The Defiant]] (10-8-2022): 
''"led by Tse, Rongjian Lan, Leo Chen, Li Jiang and Ganesha Upadhyaya"''

* Casey; ex-Tech Lead, [https://x.com/stse/status/1818442640964436320 left] 31-7-2024.

=== Partners ===
* [[Chainlink]] ([https://medium.com/harmony-one/harmony-to-partner-with-chainlink-for-off-chain-connectivity-fc0372819aca 6-2019])
* [[XYO]]
* From this [[mainnet]] [https://www.prnewswire.com/news-releases/harmony-launches-staking-becomes-the-first-sharded-proof-of-stake-blockchain-to-go-live-301062029.html announcement] (19-5-2020): "''Blockdaemon, Stake.fish, Staked.us, Wetez, Sesame Seed, [[Everstake]] and InfStones are among 16 staking partner. [[Binance]], [[BitMax]] and [[Kucoin]] will support Harmony staking on their platforms."''
*Started a full-[[stack]] [https://twitter.com/harmonyprotocol/status/1412806345833672704 partnership] with [[Terra (LUNA)|Terra]]  (7-7-2021).

=== Funding ===
* [https://www.coindesk.com/harmony-kicks-off-migration-from-ethereum-and-binance-chains-to-its-own From] [[CoinDesk]] (24-1-2020):
''"[https://www.coindesk.com/apple-amazon-alums-behind-sharding-startup-raise-18-million-in-token-sale It raised $18 million] in a token sale to strategic investors last year, followed by an [[Initial exchange offerings|initial exchange offering]] on the [[Binance]] Launchpad in May, selling an additional $5 million worth of tokens."''
* Harmony has [https://medium.com/bandprotocol/harmony-integrates-and-dedicates-portion-of-7m-grants-program-for-band-protocol-445c0a1522 integrated] (1-10-2020) [[Band Protocol]] and dedicated a portion of the $7M Grants Program towards Band Protocol.[[Category:Coins/Tokens]]
*Harmony [https://thedefiant.io/harmony-300m-ecosystem/ unveiled] a $300M ecosystem fund today to back startups working on applications and protocols (9-9-2021). [https://thedefiant.io/harmony-validators-decry-problems?utm_source=substack&utm_medium=email According] to [[The Defiant]] and its interviews, the community feels this fund was grossly [https://medium.com/@villainvalidator/the-dao-of-moving-forward-bc0fb2f8fafe mismanaged].

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