Harmony proposes sunsetting Layer 1 blockchain and migrating ONE token to Ethereum

Harmony has proposed retiring its seven-year-old Layer 1 blockchain and migrating its native ONE token to the Ethereum network as an ERC-20 token. The project intends to pivot its focus toward a generative AI-driven video initiative known as the ‘Remix Economy for AI Video.’

The proposal follows significant security challenges, including a recent exploit that allowed for the unauthorized minting of trillions of ONE tokens and a 2022 bridge attack linked by the FBI to the North Korean-backed Lazarus Group. The team cited increasing security threats from state-level actors and AI agents as reasons for the transition.

Under the proposed plan, a final network snapshot will be taken to record balances in wallets, staking delegations, and exchanges. New ONE tokens will then be airdropped to corresponding Ethereum addresses. While most holders may not need to take action, the team warned that multi-signature wallets and liquidity pools cannot migrate automatically, urging users to exit smart contracts before September 10.

Validators may begin shutting down nodes as early as September 10. To facilitate this, Harmony has established a $1.372 million compensation pool for validators and delegators who comply with the shutdown process and transition to new roles within the AI ecosystem. The proposal remains non-binding and subject to governance procedures.