Harmony is high-throughput, low-latency, and low-fee consensus platform. The market cap is $34,877,163 and the 24h volume is $3,656,225.
Harmony blockchain consensus is achieved via Shard Practical BFT. Investors can leverage their crypto 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)?
For those wishing to participate in staking without running a validator, delegation is the best approach to get involved and earn block rewards. Harmony ONE holders can delegate their tokens to existing validators using the official staking explorer. If the tokens are delegated to an elected validator, a portion of the block reward earned by the validator will be credited to the delegator.
The earned block rewards are stored in a separate reward balance of the delegator, which can be immediately withdrawn to the delegator’s account balance. The block rewards can also be staked again to achieve the compounding effect of staking.
For Validators: Validators are invited to follow this Step by Step guide, to start earning staking rewards!
- How much can i expect to earn staking ONE?
Rewards are not fixed for staking participants. They are subject to change based on the performance of the validator, and the total number of staked tokens on the network. For estimation we can consult the following indicative figures:
- A constant annual reward of 441M ONE regardless of changes in underlying variables such as block time and total staked %
- Transaction fees offset issuance creating a path to 0 issuance as protocol gains adoption
Under current conditions with around 56% of all tokens being staked, this results in an average return of 11.18% for validators and 10.15% for delegators.
- Why do Harmony Validators have different reward rates?
In Harmony Staking – Validators receive more rewards if they control less stake. By delegating with smaller validators you can increase your reward rate. You can check the individual return rates for validators here. Furthermore each provider charges his own fees for the service(running servers, maintenance, maintaining high uptime) and the rewards are just as high as the performance / uptime of the validator node.
- Can i undelegate or redelegate my tokens?
You can undelegate at any time. Your undelegated tokens will be returned back to you by the end of the epoch. By then you can simply initiate a new delegation your preferred staking validator.
- What are the requirements to run a Harmony ONE validator?
To run your own validator staking node for Harmony you need to own at least 10,000 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. Learn more how to set up your own validator here.
- Is there any risk to stake ONE?
There are certain risks associated with Staking on Harmony. Your delegated tokens are also associated with slashing risks of the validator. As a delegator, you should carefully choose validators based on their historical performance metrics such as APR, uptime and commission. In case of indifference or indecisiveness, you should distribute your delegations among multiple validators in order to minimize risk. Furthermore please consider potential risks such as:
- Account lost: Mnemonic / Private key backup
- Firmware Problems
- Network Centralization
- Price Volatility of $ONE Coins
- Technical Dept