Just wanted to bring a topic of initiatives on Harmony, how Harmony can benefit from increasing initiatives and why Harmony is not getting that much traction yet as other chains in my own opinion. If you want to bring more TVL, dapps and users to Harmony - you should increase reward emission. Take a look at Polygon and Avalanche - its great success comes from awesome initiatives.
- Polygon offered 40mil$ just for Aave at the beginning … Then they gave even more rewards with additional 85mil$ which is 125mil$ in total. 2mil$ from Harmony is 1.6% of what Polygon offered just for Aave initiatives… there is a huge abyss in terms of rewards between Harmony and other chains, which is not really encouraging for farmers and new users, because rewards won’t be that much rewarding and there are other, better places where people can make money, so they won’t jump in Harmony - simple as that.
- Polygon offered additional 30mil$ for Sushi farming which makes Polygon total initiatives to be 155mil$. Harmony offered… just 1mil$ for Sushi rewards… it’s 3.33% of what Polygon offered.
- Polygon offered additional 30mil$ for Kyber farming which makes Polygon total initiatives to be 185mil$.
- Avalanche offers 180mil$ of initiatives. I’m sure that the amount of initiatives assigned to Aave will be very similar to Polygon as the total amount of initiatives is also similar to Polygon (~120mil$ in total which makes 2mil$ of Harmony to be 1.66%). Guess where people will go for better APY? I already know where my farms will land if Harmony won’t decide to bump up the rewards. it’s really simple - I will go where I’m going to earn more money. It’s all about money, but also money helps ecosystem to grow.
- Polygon is going to offer additional 100mil$ for initiatives in future (for additional details, take a look at sources at the end of the post).
So… at the end, for the summary:
- Polygon offered 185mil$ of initiatives up to date. Additional 100mil$ is coming, which will end on 285mil$.
- Avalanche is going to offer 180mil$ of initiatives.
- Harmony is offering 3mil$ of initiatives up to date. This is only 1.62% of what Polygon offered and 1.05% of what Polygon is going to offer. It’s also only 1.66% of what Avalanche is going to offer. Not really encouraging, isn’t it?
My advice is to just follow the path of predecessors as you can simply see that it worked (there is no need to ‘reinvent the wheel’) - in both cases - and in all terms of network growth:
- distributing more tokens will make Harmony more decentralised in terms of governance
- it will attract more people to come and farm on Harmony as rewards will be finally competitive while comparing it to other blockchains, they will have a chance to try Harmony out and see how great it is in terms of fees, speed, etc - without good rewards there is simply no reason to try it out
- TVL will obviously increase, not only because new people will come, but also farmers will be finally able to put more capital to work on Harmony without bringing APY% so low that it’s not profitable anymore - remember that money is also bootstrapping the protocol
- it will attract devs to build on Harmony as they usually get rewards from people farming in their dapps (+ their personal token growth), currently there are no initiatives, so devs have no reason to build on Harmony (it’s all about money, again)
- ONE will increase in price as the whole ecosystem is based on it, people will need ONE for farming on dapps, there is no reason to dump ONE if there are great initiatives on dapps for ONE token
- … and probably many more things that I have forgotten about…
Distributing tokens is not always a bad thing. In my honest opinion, you should really reconsider your approach to initiatives as this is the main thing that is holding Harmony back from growth. Your approach is not great in terms of attracting new users to your blockchain comparing it to predecessors and their approach.
Thanks for reading!
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