Harmony Abandons Blockchain, Migrates Token to Ethereum Amid Exploit

Harmony's blockchain is on its way to being shut down and its native token ONE will be migrated to Ethereum, according to a proposal shared by the network. This shift comes after a recent exploit that involved the minting of unauthorized ONE tokens and raised the prospect of a rollback.

The plan would involve taking a final network snapshot and then issuing ERC-20 ONE tokens on Ethereum, allocating the new tokens to the same addresses that held ONE at the time of the final block. The snapshot would include wallets, staking delegations, validator rewards, smart contracts, and centralized exchanges, with 'no claims required.'

However, Harmony emphasized that multisig safes, liquidity pools, and onchain applications cannot be transferred, warning participants to unwind any smart-contract positions before September 10. This means users relying on staking-related smart-contract interactions, liquidity positions, or complex contract mechanisms may need to ensure they are fully withdrawn before migration-related execution begins.

Validators will have options: stop their nodes, continue operating as governors, or participate in Harmony's new AI-video initiative. Harmony also mentioned a compensation pool of $1.372 million for validators who shut down on time and agree to serve as governors.