Harmony
Crypto Overview
Intended Utility
Harmony (ONE) is designed as a layer-1 blockchain protocol focusing on scalability and interoperability between different blockchain networks. The platform aims to facilitate fast, secure, and low-cost transactions while enabling cross-chain asset transfers and decentralized applications (dApps).
Business Model & Current Status
The project employs a Proof of Stake consensus mechanism with effective random state sharding to achieve high throughput. However, in June 2022, Harmony suffered a major security breach where approximately $100 million was stolen from its Horizon Bridge. This incident significantly impacted the project's reputation and adoption.
Real-World Adoption
Post-hack, Harmony has struggled to maintain its ecosystem. Current usage metrics show decreased activity, with many developers and projects migrating to other platforms. The team's handling of the hack aftermath, including a controversial proposal to mint new tokens to compensate victims, has raised concerns about governance decisions.
Token Distribution & Founder Analysis
Initial token distribution allocated 22.4% to the founding team with a 4-year vesting period, 16.9% to seed investors, and 26.4% to protocol development. The remaining tokens were distributed through various rounds and ecosystem development. The founding team, led by Stephen Tse, has maintained active development despite challenges, though the focus has shifted significantly to recovery efforts post-hack.
Revenue Model & Operations
The platform generates revenue through transaction fees paid in ONE tokens, with validators earning rewards for securing the network. The staking mechanism follows Islamic principles as it represents actual work and network security rather than interest-bearing loans.
Crypto Impact
To assign a comfort level investing in Harmony from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Harmony.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.