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Governance Report: HIP-30v2 on 25% Emission Split & 2 Shards
Below covers Harmony Improvement Proposal HIP-30v2 and its common questions. The proposal aims to enhance our platform utilization, accelerate bridge recovery, and foster ecosystem growth. Its improvements are splitting token emissions and optimizing network structures.
HIP-30v2: Change to 2 shards & Split 25% emission for recovery
GOALS: Improve network efficiency and accelerate bridge recovery.
Split 441M ONE tokens annual emission: 75% for staking rewards and 25% for bridge recovery.
Shut down Shard 2 and Shard 3 of our network.
Change from 250 to 200 nodes each for Shard 0 and Shard 1.
Change the minimum validator commission from 5 to 7%.
Recovery Multisig will hold tokens from the network emission and transfer them to fund burn partners for depegged assets every month.
Recovery Multisig follows strictly the operations of the current burn.
Recovery Multisig continues to hold tokens from emission after the recovery is completed – until further Snapshot proposals.
Recovery Multisig is a 5-out-of-7 Harmony’s Gnosis Safe with elected custodians.
Open nominations for electing a diverse and engaged set of custodians from our community.
Any validator, delegator, holder may self-nominate or be nominated with Snapshot vote.
No team members or partners will participate in the election or the operations.
7/13 Thur: This proposal posted on forum. Custodian nominations start.
7/27 Thur: Nominations and options finalized; Snapshot voting starts.
8/9 Wed: 2-week Snapshot voting ends.
We will be collecting feedback and answering questions with replies in the forum – as well as in this draft document. On 8/3 Thur, we will publish and send out the final copy via our Substack. See the forum, the answers and the result for the previous proposal HIP-30 (version 1).
Questions & Answers
Question: What will be the impact on the network with the HIP-30v2 changes?
Network Configuration: 2 shards, each with 200 nodes (Total: 400 nodes)
Node Distribution: 360 external nodes, 40 internal nodes
Validator Bids: Up to 10 keys per shard, 20 keys total
Annual Staking Emissions:
Projected Annual Percentage Yield (APY):
Range: ~6.3% to 8% (Dependent on validator’s bids)
Effective Median Stake Calculation:
Based on Total Network Stake / Number of Nodes:
Total Network Stake: 5,245,109,329
Number of Nodes: 360
Effective Median Stake: ~ 14,402,876
Lower Bound (65% of the median): 9,361,869
Key/Weight Amount Optimization:
Based on Current Key Usage:
Effective Median Stake: 11,227,012
Lower Bound: 7,297,557
Validator Fellows Finalization:
Post snapshot vote for HIP-30v2:
Estimated initial number of fellows: 30 to 40
The above analysis does not account for dynamic changes in total network stake or potential transitions among validators.
Question: How does 200 nodes per shard relate to 7% minimum commission?
In the original forum post, the initial option was stated as “Change the minimum validator commission from 5 to 6.7%.” The 6.7% commission proposal was based on the configuration of 250 nodes in Shard 0 and 250 nodes in Shard 1. In that case, the validator commission would need to be increased from 5% to 6.65% for the validators to receive the same potential staking emissions if they maximize keys after the 25% emission split. The commission was rounded up from 6.65% to 6.7%.
The change from 250 to 200 nodes each for Shard 0 and Shard 1 would allow a validator a maximum of 10 keys per shard or a total of 20 keys for the network. The change means that a validator would go from 13 keys maximum per shard (225 x 6% = 13.5) to 10 keys (180 x 6% = 10.8). Given this configuration, the validator commission would need to be increased to 6.93% in order for the validator to receive the same staking emissions after the 25% emission split. The HIP-30v2 Snapshot will call for 7% minimum validator commission, which is a slight rounded up from 6.93%.
In alphabetical order:
7/25 Tue 3PM PST: Last call for nominations. ✅
7/26 Wed 3PM PST: Nominations ends. Post final nominations and options. ✅
7/27 Thur: Nominations and options finalized; Snapshot voting starts. ✅
Snapshot 1: Vote on HIP-30v2.
Snapshot 2: Vote on the 7 multisig custodians.
8/9 Wed: 2-week Snapshot voting ends.