Harmony is estimated to launch Q1 2020.
Harmony is high-throughput, low-latency, and low-fee consensus platform. The market cap is $11,025,410 and the 24h volume is $23,356,813.
Harmony blockchain consensus is achieved via Shard Practical BFT. Investors can participate via staking or delegating. Currently there are 2 options to earn passive income and staking rewards with your Harmony investment as outlined below.
Run a Validator Node
- How to stake Harmony (ONE)?
In May this year, we published Harmony’s initial design of a bidding-based staking mechanism.
Since then we have introduced a new staking mechanism called Effective Proof-of-Stake (EPoS). EPoS is designed to solve all of these issues while still maintaining the decentralization aspect of the blockchain. For an analytical description of Harmony’s EPoS please consult our guide. We are moving forward from transitioning from semi-permissioned staking to Open Staking within the next few weeks.
Staking on Harmony will be possible either as a Validator, which will require operation of a node or as a delegator which will require to delegate your tokens to a third-party validator.
Documentation for open staking and setting up your validator account can be found here. Please familiarize yourself with the commands.
Note: This guide is currently designed for Harmony’s Open Staking Testnet. It will be updated for Open Staking on Mainnet prior to the release date. Until then for validating on Harmony’s mainnet please continue to use nodes.harmony.one.
Numerous Staking as a Service Providers & Staking DAOs have announced that they will extend support for Harmony’s Open Staking. In case you don’t have the capacity to become a validator you will be able to stake on Harmony through the following partners:
BlockDaemon, StakeFish, InfStones, Honest Mining, Staked, Figment Networks, Everstake and many cryptocurrency exchanges. The analytical pricing and process for each will be updated with the launch of Open Staking.
- When can i stake my ONE tokens?
The launch of Open Staking is expected during Q1 2020. We are currently in the last phase of Open Staking with a community of validators, delegators, and staking as a service partners. Please contact Nikos through email email@example.com or Telegram to assist you through Harmony staking and include you in our TestNet to be ready to join the network immediately with the launch.
- How much can i earn staking ONE?
We believe a target stake ratio in the range of 35% is optimal for the following reasons:
- An attacker would have to purchase a controlling stake on top of the amount currently staked which would be expensive given that purchasing these tokens would in turn increase token price. The cost of an attack will be high enough to deter any attempts, especially with slashing in place.
- A lower target offers more ONE tokens to be used for DeFi and Web3 applications as collateral or other uses within these projects.
- Most importantly, Harmony will not overpay for security as a high staking target percentage would require a high token issuance rate to keep a reasonable return for validators.
This structure is designed to gradually approach zero issuance as the growth and adoption of the network leads to increased gas fees that will gradually reduce the dependence on issuance for sustainability.
In the current phase the expected rewards vary from 31,38% in case of 25% of the network’s supply being staked to 18.34% for the case of 35% of the network to be staked.
According to the Staking Rewards formula the expected Rewards will be the following:
… days_per_year * seconds_per_day * block_reward * shards / block_time / (circulating_supply * staking participation) for the reward calculation
365 * 86400 * 18 * 4 / 8 / (5098814411 * 0.35) = 15.9% annualized staking reward
Please understand that those rewards are dynamic and are changing depending on the number of tokens staked and other factors. Real-time data will be available on Staking Explorer that will be launched with the Open Staking.
You can also consult the Last 1-hour rewards for validators through this link.
- What are the requirements for staking ONE?
We believe most validators on Harmony will use a cloud setup as it has the lowest barriers to entry and is faster than provisioning one’s own hardware. Using AWS as an example given it’s the most pervasive cloud provider, between compute, storage and network costs, the average monthly expense will be $50 to run a node per our calculations using AWS’ t3.small instances and Harmony’s own estimates on network usage. Given this cost, current ONE prices, and our model, we provide a range of net cloud yields here.
In order to stake you need to own Mainnet $ONE coins – you can buy $ONE through one of the supported exchanges: Binance, Bitmax or use the Swap Tool via Honest Mining to exchange BEP2 & ERC20 $ONE tokens.
- Is there any risk to stake ONE?
There are risks associated with Staking on Harmony.
Among those could be the following:
- Account lost: Mnemonic / Private key backup
- Firmware Problems
- Network Centralization
- Price Volatility of $ONE Coins
- Technical Dept
We report here Network Outages which might affect the Staking Rewards of your Harmony Node