Harmony Abandons Blockchain Network After Security Breach
Harmony Protocol has decided to abandon its Layer 1 blockchain network after seven years of operation. The platform's native token, ONE, will be transitioned to the Ethereum ecosystem.
The decision comes in the wake of a catastrophic security breach in August where hackers minted over 3 trillion unauthorized ONE tokens. To mitigate damage, Harmony rolled back its blockchain to an August 11 state, eliminating over 109,000 transactions and 315 staking operations.
Token holders will receive their new ERC-20 tokens through airdrop on Ethereum, without requiring any manual intervention. Network validators can choose to cease operations by September 10 and receive compensation from a $1.37 million fund.
The project is shifting its focus to an AI-driven video content creation platform, which it believes will yield tens of millions in revenue from a million-user base through advertising. Validators have three pathways forward: discontinue node operations, transition into governance roles, or participate in the emerging AI video platform.