Abstract

This HIP proposes a comprehensive overhaul of the Harmony Validator Network towards achieving complete decentralization, significantly reducing internal validator influence and increasing community involvement in network consensus mechanisms.

Motivation

Since its inception, the Harmony network has shown a solid commitment to decentralization. However, the current validator network structure, dominated by internal validators, challenges this ethos. Harmony aims to foster a more secure, efficient, and community-driven ecosystem by transitioning to a fully decentralized validator network.

Specification

Background

• Genesis and Progress: The Harmony network, since the genesis block on June 28, 2019, and the subsequent introduction of open staking on May 16, 2020, has gradually reduced internal vote power from 68% to 49%.
• Need for Change: Despite these efforts, further steps are essential to minimize centralized control and fully empower the Harmony community.

Proposed Changes

1. Validator Slot Adjustment per shard:

• Reduce the internal Harmony validator slot count to zero (0).
• Allocate the available slots to external validators, increasing total slots from 180 to 200 on the mainnet

There will be a total of 400 slots available in total for external with two shards (Shard 0 and 1)

2. Voting Power Adjustment:

• Reduce internal Harmony slot voting power to zero (0).

3. External Leader Rotation:

• Implement external leader rotation to enable democratic and fair leadership among validators

Operational Challenges and Solutions

1. Risk of Network Hard Forks:

• Implement coordination and contingency planning to prevent network forks while transitioning to external validators.

2. Network Synchronization:

• Transition reliance on internal nodes for network sync to a community-driven approach by designating volunteer validators as sync nodes.

3. Security Measures:

• Transition of the blacklist/allowtx list feature management to external validators for enhanced network security and governance. Note HIP-17 suggested the decommission of the feature.

Rationale

The proposed changes aim to eliminate central control over the validator network, enhancing network security, efficiency, and community governance. This transition is a critical step towards a fully decentralized, equitable, and sustainable blockchain ecosystem underpinned by community-driven innovation and collaboration.

Implementation

• Hard Fork: 1 or multiple hard fork will be required to implement external leader rotation, adjust validator slots and voting power.
• Community Involvement: Active engagement with the community to designate sync nodes and transition security measure management to external validators.

Security Considerations

Risk Mitigation:

Careful planning and community collaboration are essential to mitigate risks associated with the transition, such as potential network hard forks.

Enhanced Security:

By decentralizing control and involving the community in crucial network functions, the proposal aims to improve the overall security and resilience of the Harmony network.

Conclusion

Achieving complete decentralization of the Harmony Validator Network is a monumental step towards realizing our vision of a fully inclusive, transparent, and community-governed blockchain ecosystem. This HIP represents a commitment to these principles, inviting all stakeholders to participate in this transformative journey.

Achieving Quorum

1. Capture the total_stake and validator_stakes from all validators in the network at a given block.
2. Ensure that the sum of all votes (Yes/No/Abstain) received is at least 50% of the total_stake, excluding stakes from known centralized exchanges and large validators who do not wish to participate in governance. (Up to today, only Binance stake are excluded)
3. Achieve a 66.67% consensus vote (Yes) based on the voting pool in point 2.

For questions and additional information, visit the forum.