Harmony Seeks Shutdown Amid Exploit Fallout

Harmony, an Ethereum-compatible layer-1 network, has proposed shutting down its blockchain and migrating its native token ONE to Ethereum. The proposal comes less than four weeks after an exploit created forged ONE tokens and led Harmony to plan a rollback that would wipe more than 109,000 transactions.

The proposal suggests taking a final network snapshot, issuing ERC-20 ONE tokens on Ethereum, and migrating exchange listings. Validators would be offered options to stop their nodes, continue as governors, or join its new AI-video initiative.

Under the proposal, all ONE balances would be recorded at the network's final block and new ERC-20 tokens airdropped to the same addresses on Ethereum. The snapshot would cover wallets, staking delegations, validator rewards, smart contracts, and centralized exchanges, with no claims required.

However, Harmony said multisig safes, liquidity pools, and onchain applications cannot be migrated, urging users to exit all smart contracts before Sept 10. Validators may begin shutting down that day, with a $1.372 million pool set aside to compensate those that stop on time, retain their stakes, and agree to serve as governors.