Proposal

Benefits

• Harmony earns ~9% yield on an otherwise stagnant portion of the treasury, while maintaining liquidity by staggering their bootstrap periods (details below).
• Aspiring validators and unelected validators in waiting have a fast-track to initial election
• Grow the validator network and decentralization of the network

Process

1. VDAO develops a “validator bootcamp” that can be completed in 1-2 weeks. Bootcamp will include:
• How to set up and run a validator
• A fully functioning validator on testnet
• Understanding and budgeting costs of operating a validator
• How to operate social media effectively as a validator and market oneself
• How to provide community support and interact in community channels (talk forum, Reddit, TG, Discord, etc.)
• Basic course on the Harmony blockchain, how it works and differs from other chains.
2. Candidate or unelected validator completes bootcamp with VDAO verifying completion via:
• Proof of participation in webinars or self-directed course
• Short essay answering open-ended questions demonstrating understanding of course material
• Short voice interview with VDAO to verify authenticity and answer any further questions (may need translator).
3. Once a candidate is a verified graduate of the “VDAO bootcamp”, Harmony will delegate 5 million ONE to candidate’s validator with a strict six-month time limit. Upon the completion of the six month delegation period, Harmony will undelelgate their ONE. If the candidate is unelected as a result, they can re-apply for the Bootcamp in 12 months.
• Bootcamp graduates understand they must market themselves and the Harmony blockchain to obtain the necessary ONE delegations to stay elected after the six month period when Harmony undelegates their stake.
• Harmony will stagger their stakes by 48 hours (~180 days / 100 5m ONE stakes = 1.8 days/5m ONE) (assuming there is demand) to ensure they have continuous liquidity of the 500 million ONE in 5m increments.
• New validators have the option to set fees between 0-5% (0% for 100 epochs) to help pay expenses and/or attract new delegators with lower fees.

Drawbacks

• Harmony will give up immediate liquidity for a large portion of their treasury that will take 6 months to unwind.
• Validators that fail to obtain enough delegations to stay elected after 6 months may feel discouraged. There is likely to be a high failure rate.