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Project 2021 Highlights

�harmony.one/web3

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1-Second Finality & Resharding

Speed & Performance

Decentralization & Security

Why Web3 if slower than Web2?

Resharding for blockchain trilemma

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Web3 Speed

Low latency

High throughput

Full security

1-second finality, better than block time

Horizontal scaling via sharding

Effective-PoS, Fast-BFT, resharding

Study shows that 47% of consumers expect a web page to load in 2 seconds or less. 40% will abandon a website that takes more than 3 seconds to load.

We are the ONLY EVM compatible chain that has full horizontal sharding

It means that every part of the chain is sharded.

Today, all these chains are similar….

But lets look at Ethereum… the reason why it is so slow and expensive is due to transaction volume.

Many chains can be fast and cheap in the present time, but over time, those chains will become slower, and more expensive as the demand increased. Harmony is the ONLY chain that truly can stand the test of time in regards to staying cheap and always being fast. If demand increases, we can easily scale the number of nodes and shards, thereby creating a future-proof blockchain.

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1-Second Finality

How possible?

Node efficiency

Protocol optimization

Partial-sync consensus, sync view change

Signature aggregation, pipelining

De-dup verification & signature collection

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Pipelining

Prepare 66% votes

Commit 66% votes

Commit all

Submit to DB

Consensus N

Consensus N+1

Prepare 66% votes

0.85s

1.00s

0.90s

0.4s

0.1s

New Block

...

Prepare 66% votes

Commit 66% votes

Commit all

Submit to DB

Consensus N

Consensus N+1

Prepare 66% votes

0.85s

1.00s

0.9s

0.4s

0.1s (savings)

New Block

...

Submit to DB

Prepare (66% votes)

New Block

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Resharding

Secure randomness

Bounded Cucko rule

Security guarantee

On-chain Verifiable Random Function

Reshuffling node subsets among shards

Join-and-Leave or adaptive adversaries

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DAOs in Harmony

Shared struggle

Shared success

Shared responsibility

90% decrease in Developer DAO

1,600% increase in Community DAO

$100K+ in compensations

The central tenet of decentralization is the fact that it harnesses the strength of a community. Communities cannot be forced. Believe me - we have tried. Validator DAO, Community DAO, Developer DAO, Incubator DAO, Creative DAO… Research, Wallet, Regional, Incubation -- they all have mandates. They all have a common purpose… but ARE they a community?�

Let’s look at what we HAVE seen regarding the projects that have launched on Harmony --

Our initial meeting with the Developer DAO had 40 people on the call. The most recent call… had 4. Why?

Our initial engagement with the Incubator DAO had 100% of the governors on the call and we had a very active engagement from over 20 people in the forums. While we are still moving forward - we are hitting stumbling block after stumbling block. Why?

The Community DAO started with only 5 governors but has now grown to regular meetings of over 80 people -- what is the difference?

�What actually makes a community? Why is a church a community, but the YMCA isn’t? Why is a freshman dorm, a fraternity, a biker-gang, a community? Why are the Ohmies and - hopefully - the Euphorites communities? Why can OlympusDAO withstand a vampire attack, but Uniswap be hobbled by one?

Common purpose. Sounds trite doesn’t it? But that is what keeps people coming back. They have a SHARED MATERIAL INTEREST in common. When they work hard together - they can share the rewards together. As they are fighting to accomplish something as a team - the challenges, the setbacks, the struggles -- they have all of those in common.

We have seen community spring up naturally - a spontaneous connection forged between individuals during a time of crisis or a time of struggle. It is when we bond together to do hard things that we create that sense of community. We pull together, pool our resources, stretch for the thing that is JUST out of reach and when we achieve it - we all, collectively, bask in the success and the rewards.

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Cooperative Gain

Coordination benefits

Public rewards

Accountability

5 minutes to complete process

Uniformly trusted, effective recruitment

Constraints force difficult decisions

NOTES: Coordination Benefits -- Asynchronous. Clear. Simple. Allocates resources more effectively.

Public Rewards - reviewed the participants - 100% TRUSTED this process. The publicity creates FOMO for those seeing that work is being done, being rewarded and that the organization is being true to their word.

Accountability -- Could only choose 5 teammates. That mandated that we had a constraint and we couldn’t just give out our tokens equally. That made us make choices.

(3,3) has become a meme. We see it on our twitter handles. I have seen it in email signatures and on a billboard in NYC during NFT.NYC. I am sure that, if I were still in grade school, I would see it scrawled on the wall of a bathroom stall. (3,3) is everywhere. But what does it mean? The OlympusDAO team said it best -- this represents the positive-sum environment created by cooperation.

When our community comes together and we all coordinate for the betterment of the WHOLE community - we can ALL win. To strike a contrast - let me tell you what I have seen elsewhere. Note: some of the following details have been obscured for...well… obvious reasons.

During my early days in crypto, I was hard at work building an ecosystem and a community - much like I am doing now. We had talented developers, visionary builders and we had crystalized as a community because we had accomplished some great feats together. But now, the ecosystem was on firm enough footing so that community members could build their own thing. And the talented, energetic members started to do that. Obviously, some of these new projects needed support from the larger community and they came to me to see if I could organize and provide that support. I was enthusiastic. Projects were going to get launched and take the whole community to the moon!

However - my proposals were vetoed. Every effort I made to organize an AMA, showcase a project, bring human and financial capital to bear was stimed. I finally got the main roadblock on a call and this is what he said: “Nah, mate. He’s gonna make a [expletive]-ton of money. Screw him. We don’t need to give him help.”

I was astonished. The ONLY reason my work was being halted was because the person that was to receive it would have profited from his hard work.

This is a famine mindset. This is zero-sum thinking. This insidious, infectious idea posits that if you win, I must lose. If that is the case - then of COURSE I would do everything I could to make sure you lose. But, in so doing, the WHOLE community loses.

The basic premise of ALL cryptocurrency is that we are all in it together. The ONLY way we win is if we win together.

But because this must be a joint effort - we need a way to police our community. We need accountability. We need a mechanism that is (A) transparent, (B) Trusted, (C) Rewards those that cooperate and, unfortunately, (D) punishes those that don’t.

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Scaling Incentives

Coordinape

Graphic transparency

Ease of use

$100K+ bonus, fully peer-to-peer

Expands to more use-cases

1-click onboarding

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Empower DAO

Own responsibility

Build community

Incentivize belonging

$950k+ DAO funding in 3 months

73 governors, none from Harmony team

One for all – all for ONE

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Terra UST’s bridge

20% APY

Decentralized Basic Income

Staking derivatives

20% yield from Anchor Protocol

12% rewards from staking

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Stablecoins

Fractional-algorithmic

OIN stablecoin

FRAX’s Price Consumer Index

Collateralized by native ONE

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DeFi Components

$80M

$17M

$120M

$50M

$353M

$274M

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Mechanics

Staking derivatives

Lending & borrowing

Securitization

>10% from network staking rewards

5% from variable-rate risks & returns

5% from separating risk tranches

The common household saver has typically turned to government bonds and fixed-term savings with an average annual yield of 0.06% for the steady accumulation of wealth. To the average saver, the stock market may seem like a rather complex and risky place. Real estate is of course considered relatively stable but the barrier to entry is much higher. Above all, cryptocurrency remains very far from a mainstream investment option due to the high volatility of the market and other perceived risks.

We can use several blockchain protocols to achieve a steady 20% annual yield without exposing consumers to the volatility and risks of cryptocurrency markets.

Savings can be channeled into the staking deposits in Proof-of-Stake protocols. For Proof-of-Stake blockchains like Harmony, staking is an essential part of maintaining the integrity of the network. Token-holders can already receive staking rewards in the order of 10% annual rate and these rewards are relatively stable.

For the other 10%, we can tap into fixed-rate lending protocols such as Anchor protocol and securitization and risk tranches.

These sources of income are not available in traditional financial systems.

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“ONE to Earn”

$75 per hour

For Builders & Creatives

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Trustless Bridge vs Rollups

State Root

txn₁	txn₂	...	txn_n

USDT

Wrapped USDT

Validate StateRoot (ZK or Fraud Proof)

Store transactions(Data Availability)

Contract

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Rollups Today

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Trustless Bridges

Light Client

Relayer

Data availability�On-chain staking

Checkpoints�Smart contracts

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Harmony as Layer 2

Trust model

100% EVM

Faster & cheaper withdrawals

150+ validators, $700M staked, on-chain slashing

v.s. Arbitrum, Optimism, ZkSync’s custom virtual machines

6-minute finality, 200k gas ($65), on-demand batches

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Cross-Chain NFT

Portal to Metaverse

Long-tail artists <-> fans

Tools to empower builders

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Easy Bridges

High security

Two-way bridges

ERC721 & ERC1155

Via multi-signature operators

Harmony <-> Ethereum (with OpenSea)

Standard tokens, EVM tooling

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Why?

NFT for everyone

High fee slows adoption

Global, direct markets

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Strategy

Derivatives & lending

NFT fractionalization

GameFi in Metaverse

Intellectual properties & collaterals

Crowdfunding & market-making

Launchpad for blockchain games

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Infrastructure

For creatives & artists

Tools & middlewares

$13M NFT grant

Streaming loyalties, gated access

Asset grouping, multiple marketplaces

Generated arts, GameFi, Play2Earn

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10,000 Scholars

$10M Grants

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400 Builders

50 @ SF Day ONE��50 @ NFT.NYC��

300 @ ETHDenver

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$1M Hackathon

Stanford, Berkeley, CMU, UCLA, Kiev

SF Web3 Week

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�

10 Regional DAOs

2 hackathons�

5 grant projects

ES, KR, RU, FR, CN

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TGI-Dreams

#wagmi��Build our future together

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