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Harmony Protocol exploit and proposed Layer 1 sunset

Updated 1 time since CLSTR started tracking revisions of this situation.

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2026-08-17 13:22 UTC → 2026-09-07 10:58 UTC · added removed

Harmony Protocol token minting exploit and proposed Layer 1 sunset

The Harmony Protocol experienced a major security exploit involving the unauthorized minting of approximately 4 billion ONE tokens, which represented representing roughly 26% of the total circulating supply. The exploit, which reportedly utilized empty network blocks, caused the price of ONE to crash by 30% to 50% as billions of tokens were transferred to exchanges. In response to the incident, response, the Harmony team issued an emergency validator patch and patch, paused its bridge. To recover the network, developers announced plans to perform bridge, and initiated a blockchain rollback to a checkpoint from August 11. This process will rollback was designed to discard over 109,000 regular transactions and 315 staking transactions, as the team determined that selectively restoring transactions was unsafe. Preliminary investigations suggest the exploit targeted Harmony’s legacy consensus verification code and native cross-shard accounting. Authorities and investigators are currently working with exchanges Following these security challenges, Harmony has proposed sunsetting its seven-year-old Layer 1 blockchain and law enforcement migrating the ONE token to trace the forged Ethereum network as an ERC-20 token. The project intends to pivot its focus toward a generative AI-driven video initiative called the ‘Remix Economy for AI Video.’ The proposal includes taking a final network snapshot to airdrop new tokens to corresponding Ethereum addresses. To facilitate the transition, Harmony has established a $1.372 million compensation pool for validators and manage delegators who comply with the fallout. shutdown process. The proposal remains non-binding and subject to governance procedures.

Versions

  1. 2026-09-07 10:58 UTC Harmony Protocol exploit and proposed Layer 1 sunset
  2. 2026-08-17 13:22 UTC Harmony Protocol token minting exploit

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