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Harmony

Harmony Protocol aims to scale blockchain to 10M TPS. The technology is based on a combination of OmniLedger, Google's UDP, and Mosaic Pull Reduce.

Rating: 3.4

Official contacts
Location: N/A
Web-resources:   Whitepaper Website
Social networks: N/A
Product source tracking: https://github.com/min-lang/min
Details Description Risks Full analysis Team

Detailed review

Stage of product development
The product development started at the end of September 2017, according to GItHub commits. There were no updates on GItHub since October 1st 2017. Currently, prototype complier is avaiable on GItHub. It compiles Min, the security-verifying programming language, directly to machine code, eliminating the common dependencies of libraries or system tools. Currently, the compiler bootstraps itself in x86-64 instructions and supports development in Mac OS.


Token description
ICO date
TBA
Token price
$0M - $7M: 40% bonus, seed round
$7M - $16M: 20% bonus, initial private sale
$16M - $30M: 0% bonus, final (public or private) sale
Platform
Own wallet
Hard cap
30000000
Capitalization of token pool
150000000
Blockchain
Own Blockchain
Token distribution date
N/A
Consensus method
Own Algorithm
Escrow
N/A
ICO currencies
ETH
Bounty camping
TBA
Markets
N/A
Token functions
It seems that the tokens will be used for paying transaction fees. More information is TBA.
Tokens distribution
Token Sale (40% no lockup, 10% monthly over 6 months; for bonus - 100% release after 1-year lockup) (20.0%)
Developer & community (1-year 28% lockup, 1.5% monthly over 4 years) (40.0%)
Foundation & research (28% no lockup, 1.0% monthly over 6 years) (28.0%)
Founder & team (1-year 28% lockup, 2% monthly over 3 years) (12.0%)
Risks
MARKET

Competition in the sphere of scalable dApp-protocols is more severe than in others, so it has to be taken into consideration. Several projects have already launched alternative protocols that aim to significantly increase the throughput of the blockchain protocols. That is why the potential growth and community attention to Harmony might be lower.

PRODUCT

The current Testnet throughput of 13K TPS at 1800 nodes cannot be validated. MVP of the platform is not available. Public Testnet is expected only in Q4 2018. There are already several projects aiming to create decentralized AI data marketplace. The strategy of creating a new programming language might be at risk due to a slow adoption of the new language by existing projects and users. The current roadmap looks mediocre and gives only rough outlines of the product development.

BUSINESS MODEL

The claimed fee size of 0.1% at max is subject to change. There is only little information available on the token economics.

FINANCES

The lockup scheme looks quite long. If the rumors about the TGE allocation are correct, then the post-ICO valuation will be $150 million which as an inflated number. The expenses distribution gives only a rough estimate and not detailed. The token price has not been given yet.

TEAM
Only a couple of employees mention Harmony as a workplace on their LinkedIn accounts. It seems that the claimed team works on the project only part-time.There are no marketing specialists in the team.
Full analysis
Market

One of the main issues of the blockchain technology mass adoption is its low level of scalability. The current low capacity of the main blockchain protocols and cryptocurrencies (Bitcoin, Ethereum), more specifically 10-30 transactions per second (TPS), cannot cover the world's commerce anytime. In contrast, Visa claims to have 56,000 TPS on its network, while Alipay has achieved 200,000 peak TPS in November 2017. The scalability problem of the current blockchain-based networks poses significant limits for their extensive applications. How to scale up blockchain TPS without compromising its security and decentralization remains elusive. In order to solve this problem, several projects have already launched the alternative protocols that aim to significantly increase the throughput of the blockchain protocols. For instance, Dfinity already raised $4M in Private Sale and aims to attract $90M. Zilliqa maxed at $1.05 billion market cap and deployed verified protocols & verified contracts. IOTA is able to process 500-800 TPS, raised 400M and now 11th by market cap in the world of cryptocurrencies. That is why the potential growth and community attention to Harmony might be lower. Overall, the scalable protocols for dApss gain large public attention during token sales and have comparably high ROI's. However, competition in this sphere of blockchain is more severe than in others, so it has to be taken into consideration

Product

The protocol which team aims to create will allow up to 10M TPS. The technology is based on a combination of OmniLedger, Google's UDP, and Mosaic Pull Reduce. The team has designed a new programming language, Min, and built a prototype compiler to demonstrate it.\n\nThe product development started at the end of September 2017, according to GitHub. There were no updates on GitHub since October 1st, 2017. Currently, prototype compiler is available on GitHub. It compiles Min, the security-verifying programming language, directly to machine code, eliminating the common dependencies of libraries or system tools. Currently, the compiler bootstraps itself in x86-64 instructions and supports development in Mac OS. The team claims that the current version of Testnet allows getting 13K TPS at 1800 Nodes. However, it cannot be validated. Therefore, MVP of the platform is not available. Public Testnet is expected only in Q4 2018.\n\nThe current roadmap looks mediocre and gives only rough outlines of the product development.

Business model

It seems that the tokens will be used for paying transaction fees. The team claims that the fee size will be 0.1% at max. There is no further information on the token economics and use cases.

Finances

The team aims to sell 20% of tokens during TGE. The official caps has not yet been publihsed however it can be found on web that the team aims to sell 20% of tokens for $30 million. If this is correct, then the post-ICO valuation will be $150 million which as an inflated number.\nDuring the seed round (which is happening right now) the team aims to get $7 million. The seed round participants will receive 40% bonus. 40% of the tokens will be released immediately, the rest 60% will be locked over 6 months using 10% monthly scheme. All bonuses will be released only after 1-year lockup.\n\nDuring Initial Private Sale (expected in Q3 2018) the team aims to raise additional $6 million. The initial private sale participants will receive 20% bonus. Again, the same lock up scheme will be applied for these tokens.\n\nThe public sale might be conducted in Q4 2018. Howeever, now it is unclear.\n\nPlanned Use of Proceeds: 40% for technical development of protocol platform; 20% for community engagement, developer programs; 15% for marketing, business development; 10% for operations, equipment, cloud servers; 10% for collaboration with academic research; 5% for compliance, legal, finance. The expenses distribution gives only a rough estimate and is not detailed.

Team

The project has a solid team of tech professionals which had previous succesful entrepreneurship experience. Founder of Phantom - Stephen Tse - was a researcher at Microsoft Research, a senior infrastructure engineer at Google, and a principal engineer on search ranking at Apple. He founded the mobile search Spotsetter with institutional venture capital; Apple later acquired the startup.\nThe team members previously worked at Apple, Google, Carnegie Mellon University, Amazon Lab126, Microsoft, and other tech companies. All of the members have technical background. Some of them hold degrees in engineering and computer science from top schools, such as University of Waterloo, Carnegie Mellon, Columbia, UCLA.\nThe only risk is that most of the claimed members do not have Harmony on their Linkedin accounts as a workplace. Also, now there are no marketing specialists in the team.

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