Harmony's Hasty Exit: AI Fears Prompt Ethereum Migration

Harmony Protocol has announced its decision to shut down due to concerns over AI threats and state actors. The project, launched in 2019, will migrate its ONE token to Ethereum, where it hopes it will be safer.

The move comes after the protocol suffered a massive exploit on August 11, resulting in the unauthorized minting of 3 trillion native ONE tokens. The team later executed a rollback of the chain, restoring its pre-hack state.

Harmony's Horizon bridge was hacked last year, resulting in losses of $100 million. The network's TVL has dropped from over $1 billion to just $150,000.

The migration will be based on a snapshot with user balances air-dropped to the same wallet addresses on Ethereum. However, tokens deposited in smart contracts cannot be migrated and users have been given three days' warning to withdraw their funds.