This Harmony Improvement Proposal (HIP-30) aims to optimize the Harmony validator network, enhance the network’s overall performance, and align token emission with the long-term sustainability of the ecosystem. The proposed changes include:
HIP30-1: Decreasing the annual token emission to validators from 441 million to 221 million.
HIP30-2: Reducing the number of shards from 4 to 2.
HIP30-3: Decreasing the total number of nodes from 250 to 100.
HIP30-4: Limiting each node to 1 BLS key.
The Harmony network is continuously evolving to meet the growing demands of a rapidly developing blockchain ecosystem. As such, it’s vital to implement changes that promote efficiency, security, and long-term sustainability. The proposed updates in HIP-30 aim to achieve these goals while ensuring that validators are rewarded fairly for their contributions.
Token Emission Reduction
By decreasing the annual token emission from 441 million to 221 million for staking, we aim to create a more sustainable ecosystem with a balanced supply and demand, fostering long-term growth and stability. Additionally, another 220 million tokens will be allocated to ecosystem development, which includes recovery efforts. This reduction in token emission for staking will not negatively affect validator rewards, as the overall rewards per validator will increase due to the decrease in nodes. This approach ensures that validators continue to benefit from the changes while maintaining a healthy ecosystem for Harmony’s long-term success.
Consolidating the network from 4 shards to 2 will streamline network operations, enhance efficiency, and still maintain the possibility of cross-shard communication in the future. This change will result in lower network latency and reduced communication overhead, translating to faster transaction processing and increased throughput.
Reducing the number of nodes from 1,000 (250 per shard across 4 shards) to 200 (100 nodes per shard in 2 shards) will optimize network performance by decreasing the number of required message exchanges and limiting communication overhead. This change will also lead to faster consensus agreement, improved transaction finality, and increased rewards for each validator due to the decreased total number of nodes. By transitioning from a four-shard structure to two shards with fewer nodes per shard, we aim to create a more efficient and streamlined Harmony network while maintaining the benefits for the validator community.
BLS Key Limit
Implementing a 1 BLS key per node limit will standardize validator operations and promote fairness within the validator community. This change encourages new validators to enter the ecosystem, fosters healthy competition, and rewards efficiency and innovation.
The proposed changes outlined in HIP-30 aim to benefit the Harmony ecosystem and validator community by:
- Enhancing network performance through sharding and node optimization.
- Ensuring long-term sustainability with a reduced token emission rate.
- Increasing validator rewards by reducing the number of nodes and redistributing rewards.
- Encouraging new validators to join the ecosystem and fostering healthy competition.
These changes will significantly impact the Harmony network and its community, and we encourage validators to consider the potential benefits of these optimizations.
We invite the Harmony validator community to review HIP-30 and provide feedback on the proposed changes. Your input is invaluable, and we’re committed to working together to shape the future of Harmony. After thorough discussion and evaluation, the community will have the opportunity to vote on implementing these changes, ensuring a transparent and collaborative decision-making process.