Wrapped Harmony (W-ONE) is an HRC-20 fungible token representing wrapped Harmony ONE, minted on the Harmony blockchain. The native protocol token, Harmony ONE, powers Harmony’s open and decentralized network by incentivizing and rewarding developers, validators/stakers, investors, and community members who contribute to developing, securing, and governing the system. Users must pay small transaction fees in Harmony ONE to utilize the network.

This scalable, high-throughput protocol relies on its native token for various payments and participation methods, including staking, covering transaction fees, and engaging in voting and governance. Harmony employs blockchain technology to align the incentives of stakeholders, developers, and businesses, enabling them to construct open marketplaces for both fungible and non-fungible tokens and assets. Additionally, the team says the upcoming application of zero-knowledge proofs aims to transform Harmony into a data sharing platform, addressing the mutual distrust among individual market participants who wish to acquire data but are hesitant to share it.

The Harmony token serves the protocol in these specific ways:

• It is used for staking, which is required to take part in POS consensus and earn block rewards along with transaction fees.
• It covers transaction fees, gas, and storage fees.
• It is utilized for voting in the on-chain governance of the protocol.