Harmony Abandons Standalone Blockchain Amid AI-Driven Security Concerns

Harmony is considering ceasing operations of its layer-1 blockchain and transferring its ONE token to Ethereum due to concerns about state-sponsored hackers and AI agents. The proposal would eliminate Harmony's validator set and rely on Ethereum's proof-of-stake security.

The company cited the increasing threats from state actors and AI agents, with a recent study showing that 56% of accounts banned for cybercrime activities were rated medium risk or higher. This is not the first time Harmony has faced security issues; in 2022, the FBI attributed a $100 million Horizon Bridge theft to North Korea's Lazarus Group.

According to Harmony, regular token holders do not need to take action, but users must exit smart contracts by September 10. Validators will be able to deactivate their nodes on that day, and $1.37 million has been allocated for validators who become 'governors' in the new AI video business called The Remix Economy.