Harmony’s open, decentralized network is enabled through the use of the native protocol token - Harmony ONE. The token incentivizes and rewards a variety of participants including developers, validators/stakers, investors, and community members who develop, secure and govern the network. In order to use the network, users pay a small transaction fee denominated in the native Harmony token.
Harmony’s scalable, high-throughput protocol is powered by a native token which is used for various forms of payment and participation in the protocol (staking, transaction fees, voting & governance).
Harmony uses blockchain to align incentives of different stakeholders, developers and businesses while allowing them to build open marketplaces of fungible and non-fungible tokens and assets. Furthermore, the upcoming application of zero-knowledge proofs will allow Harmony to become a data sharing platform that can overcome the conflicting problem plaguing many information and data markets: that individual market participants’ have mutual distrust to share data but strong desire to acquire data themselves.
The Harmony token will function in the following aspects of the protocol:
The token is used for staking, which is necessary to participate in the POS consensus & earn block rewards and transaction fees.
The token is used to pay for transaction fees, gas and storage fees.
The token is used in voting for on-chain governance of the protocol.
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