Harmony proposes retiring its layer‑1 blockchain and moving ONE to Ethereum

Harmony announced a proposal to retire its standalone layer‑1 blockchain and migrate the ONE token to Ethereum as an ERC‑20 asset. The plan includes a final network snapshot, a migration of exchange‑listed tokens, and a compensation pool for validators who shut down their nodes.

Migration details

After a final snapshot, ONE balances held in wallets, staking delegations, validator rewards, smart contracts and centralized exchanges will be recorded and transferred to the same addresses on Ethereum. The token’s total supply and emission rate will remain unchanged. Harmony will publish the Ethereum contract code, snapshot calculations and airdrop scripts for public audit.

Validator transition

Validators may begin shutting down nodes on Sept. 10. Eligible operators who close nodes on time, sign an agreement, retain their stake and continue as governors will receive compensation from a $1.372 million pool, distributed over four quarters. Validators can also choose to join Harmony’s upcoming AI‑video initiative.

AI‑video “remix economy”

Following the blockchain shutdown, Harmony intends to launch an AI‑driven video platform. The model envisions a small group of creators publishing prompts, AI agents generating remixable video clips, and operators handling generation, distribution and moderation. Harmony will subsidize GPU hardware for the first year and projects revenue of up to $1 million for operators, with a $10 monthly subscription and a 30 % referral commission.

Background: recent security incidents

The shutdown proposal follows an August exploit that forged billions of ONE tokens, prompting a rollback of over 100 k transactions. Harmony has previously faced other token‑minting and bridge attacks, including a December 2023 staking logic flaw and a June 2022 breach of its Horizon cross‑chain bridge.

Next steps

The proposal is non‑binding and has not yet entered Harmony’s validator‑led governance process, which requires 51 % stake participation and a two‑thirds majority vote after a 14‑day voting period.