Image credit: Shutterstock
Harmony has proposed shutting down its seven-year-old Layer 1 and moving ONE to Ethereum, weeks after a network exploit led the project to roll back more than 109,000 transactions.
Under the non-binding proposal, Harmony would take a final network snapshot and issue replacement ONE as an ERC-20 token. The final shutdown date has not been set, and the plan can still change following community and validator feedback.
ONE Holders Would Receive ERC-20 Tokens Automatically
Harmony plans to snapshot wallet balances, staking delegations, validator rewards and exchange holdings at the network’s final block. Corresponding ONE tokens would then be airdropped to the same addresses on Ethereum without requiring holders to submit a claim.
The proposed migration would preserve ONE’s total supply and emission rate. Future emissions would be redirected toward Harmony’s planned AI video business instead of paying validators to secure its own Layer 1.
Smart contracts cannot migrate automatically. Harmony has advised users to exit liquidity pools, multisig safes and other on-chain applications by September 10 ahead of the eventual network shutdown.
Validators Can Begin Shutting Nodes on September 10
Validators can stop operating nodes from 7 a.m. Pacific time on September 10. Harmony has set aside $1.372 million to compensate eligible validators and delegates for rewards lost between their shutdown and the network’s final block.
Payments would be distributed over four quarters to operators that shut down on schedule, retain their stake, sign the required agreement and continue as governors in Harmony’s next project.
Proposal Follows August Exploit and 109,000-Transaction Rollback
The proposal follows an August security incident involving a cross-shard receipt verification flaw that allowed forged ONE to be created. Harmony later reconstructed the attack at more than 3 trillion unauthorized ONE and rolled the blockchain back to remove the fraudulent supply.
The project now intends to redirect its work toward an AI video business built around remixing and adapting creator content.
September 10 is the immediate deadline for users with assets inside Harmony smart contracts and for validators beginning the shutdown process. Harmony has not yet named the final block, announced a final network shutdown date or confirmed when the Ethereum version of ONE would begin trading.
