PEP-12: Harmony One Token Swap

Attributes

  • Author(s): Jack Chan, Leo Chen
  • Recipient(s): Harmony Foundation token swap with POKT Network
  • Category: Agreements (Token Swap)
  • Related Installments: See API3 Token Swap
  • Asking Amount: 170,000 POKT for 235,000 ONE
  • Timeline: 2 to 4 weeks from signing to launching onto POKT Network of node runners

Background

Harmony is an EVM-compatible multi-shard blockchain focused on Cross-Chain with Trustless Bridges, Social Wallets with Keyless Security and Cross-Border with FinTech Integrations. Harmony has a network of independent entities running Validator nodes globally that are capable of exposing Remote Procedural Call (RPC) services while validating for Harmony’s blockchain. RPC services currently routed via api.harmony.one are crucial for Harmony’s ecosystem to ensure the multiverse of DeFi and NFT DApps on the Harmony blockchain can operate with high availability and be horizontally scalable as the demand for the RPC services grows.

Summary

We propose to shift Harmony’s RPC network traffic into Pocket Network’s ecosystem of up to 5,000 node runners as one of the first initiatives towards a decentralized RPC service. To do this, Harmony and Pocket Network will perform a token swap that will result in ONE tokens owned by the Pocket DAO (managed by the Pocket Foundation) and POKT tokens owned and managed by the Harmony Foundation with a responsibility to transfer the ownership to one of Harmony’s upcoming Developer DAO (or equivalent) when this DAO is established and ready to manage the tokens.

We propose that ONE and POKT governance matters be debated on the Harmony and Pocket forums and sent to both the Harmony DAO and Pocket DAO respectively for votes. The Foundation directors will be compelled to vote according to the will of the DAO with the PocketDAO-run validator which will be listed for open delegation for others here. The ONE and POKT tokens will be respectively held and locked by each organization for a minimum of 1 year.

Motivation

This is a vital part of the Harmony and Pocket Network ecosystem. Firstly, cross-community governance is important to help decentralize the decision-making power. Secondly, the POKT tokens will be used for API calls and to encourage infrastructure on the Harmony network to be built around the Pocket Network community and nodes. Finally, the ONE tokens can be used by Pocket Networks for future community projects that require cross-chain liquidity i.e. bridges, general network fees, staking and/or governance.
The amount of tokens swapped is based on the amount of POKT tokens required to stake up to 20 million/relays/day.

Growth and Scalability

The entire Harmony network has around 50 to 100 million API calls per day for its multiverse of DeFi and NFT DApps, in addition to developers and chain operators. The goal of the outlined budget is to be able to scale this up to 5X the current community size (i.e. 500 million API calls per day) in a year. Harmony will provide backup-restore infrastructure on behalf of all node runners for archived and pruned nodes the first 12 months.

Budget

There will be a one-time token swap of 170,000 POKT tokens for 235,000 ONE tokens

These would be locked for 1 year in the receiving addresses, however the agreement would not preclude the usage of staking from the addresses for utility based on App staking relays, or respective DAOs participating in each other’s governance.

Note: The value of USD/POKT will be determined as the weighted average settled rate for the previous 7 days of completed transactions on the Thunderhead OTC market tracked here. The value of USD/ONE will be determined as the most recent price on Binance tracked here. Should the vote be approved by the DAO, the swapped token amount will convert based on these prices timestamped by when the vote initiated. The amount will equivocate both POKT and ONE to reach the required 170,000 POKT for staking.

Rationale

A strategic relationship between the Pocket Network ecosystem and Harmony ONE ecosystem. Currently Harmony is hosting RPC services and hasn’t worked with Pocket Network infrastructures in the past. The token swap would be used to help begin a sustainable long term and drive value for the POKT community and DAO in governance of the Harmony’s network.
As of the writing of this proposal, Pocket Network has whitelisted the Harmony Mainnet (chainID 0040) on 10/06/2021 and has begun providing service.

Deliverable(s)

  1. Token Swap
  2. Setting up of POKT Validator
  3. ONE as paid network on POKT
  4. Cross community marketing, PR, and AMA

Community Feedback

We’re looking for community feedback from the DAOs from both Pocket and Harmony Foundations

Contributor(s)

Foundation Directors for Pocket Network and Harmony Foundation.

Copyright

Copyright and related rights waived via CreativeCommons.

2 Likes

I am in favor - if anything it is a good faith expression as with the other swaps.

1 Like

This Token Swap Agreement is very compelling.

Just a couple of facts to highlight how meaningful a partner Harmony is turning out to be:

  • Harmony’s Public RPC traffic has picked up since being whitelisted on 10/16. Source: POKTscan

I think this would be a great way for Pocket to add another meaningful partner (and asset) to our DAO.

2 Likes