Harmony Proposes Layer-1 Blockchain Shutdown Amid Security Concerns

Harmony plans to sunset its seven-year-old layer-1 blockchain and migrate the ONE token to Ethereum. The proposal comes after an August security incident that forced the project to consider reversing days of blockchain activity.

The plan involves taking a final snapshot of the network, issuing ONE as an ERC-20 token on Ethereum, and moving exchange listings to the new token. Eligible validators can begin shutting down nodes from Sept. 10 and will receive compensation from a $1.372 million pool.

Harmony plans to give validators the option to remain as governors or participate in its new AI video initiative after the blockchain is retired. The project cited security threats from state actors and AI agents when announcing the proposed shutdown.