Harmony Plans to Shut Down Blockchain, Move ONE Token to
Ethereum Over AI Security Fears
Harmony Protocol is preparing to sunset its Layer-1 blockchain and migrate its native ONE token to Ethereum, citing growing security risks from state actors and AI agents. The decision comes weeks after a major exploit forced Harmony to roll back more than 109,000 transactions.
What Happened?
Harmony, which launched its mainnet in 2019 as a fast and low-cost alternative to Ethereum, has proposed ending operations of its independent blockchain.
Under the plan:
- ONE would become an ERC-20 token on Ethereum.
- Harmony would take a final snapshot of eligible balances.
- Matching ONE tokens would be issued to corresponding Ethereum addresses.
- Validators could begin shutting down nodes from September 10, 2026.
- The proposal remains non-binding, and Harmony has not confirmed the exact final block.
Harmony said the decision reflects concerns that threats from state-backed attackers and increasingly capable AI agents have become too difficult to manage on its own network.
Why Is Harmony Leaving Its Own Blockchain?
The shutdown follows several serious security incidents.
In August, an attacker exploited a flaw in Harmony's cross-shard transaction verification system and generated more than 3 trillion unauthorized ONE tokens across six transactions. Harmony subsequently rolled the network back, removing more than 109,000 transactions from its history.
The incident followed the much larger 2022 Horizon Bridge hack, when attackers stole nearly $100 million in crypto assets. The FBI later attributed that attack to North Korean-linked hacking groups.
Harmony's Recent Security Timeline
| Event | Impact |
|---|---|
| 2022 Horizon Bridge hack | Nearly $100M stolen |
| August 2026 exploit | More than 3T unauthorized ONE created |
| August rollback | 109,000+ transactions removed |
| September 2026 proposal | Harmony plans to sunset its Layer 1 |
Will ONE Be Safer on Ethereum?
Moving ONE to Ethereum could remove the burden of securing an independent Layer 1, but it does not eliminate all security risks.
Ethereum provides a much larger validator ecosystem and established infrastructure. However, token holders could still face risks involving smart contracts, bridges, exchanges, wallets and applications built around the migrated asset.
Harmony's proposal also highlights an important limitation: multisig safes, liquidity pools and on-chain applications cannot simply be migrated to Ethereum. Users have therefore been urged to exit Harmony-based smart contracts before September 10.
What Happens to ONE Holders?
Harmony says eligible balances will be captured in a final snapshot and replaced with ERC-20 ONE on Ethereum.
The proposed snapshot would include:
- Wallet balances
- Staking delegations
- Validator rewards
- Certain exchange balances
- Other eligible ONE holdings
The team says users will not need to manually claim the replacement tokens.
Important: Users holding assets inside Harmony-based DeFi applications need to review those positions before the September 10 deadline because those contracts cannot be automatically reproduced on Ethereum.
Harmony's New AI Direction
The shutdown is not simply an exit from crypto. Harmony is proposing to redirect part of its ecosystem toward an AI-video “Remix Economy.”
The concept involves creators publishing prompts and assets that users can remix, while AI agents generate additional video content. Harmony says advertising could eventually support a large user base.
The project has also allocated about $1.37 million to compensate eligible validators that shut down their nodes and transition into governance roles connected with the new initiative.
ONE Price Reaction
ONE was trading around $0.00073 in recent reports, with the token down roughly 4% over 24 hours as markets reacted to the proposed transition.
The migration creates uncertainty around ONE's future because the token would no longer be used to secure an independent Harmony blockchain.
What Investors Should Watch
The most important developments now are:
- Final Harmony snapshot date and block
- Official Ethereum ONE contract address
- Exchange support for the migration
- Instructions for DeFi and staking users
- Whether Harmony's governance formally approves the shutdown
- Progress of its proposed AI-video business
FAQ
Why is Harmony shutting down?
Harmony says security threats from state actors and AI agents have become too significant to continue operating its independent blockchain. The decision also follows major security incidents.
What happens to ONE?
Harmony plans to migrate ONE to Ethereum as an ERC-20 token through a final network snapshot and matching token distribution.
Do ONE holders need to do anything?
Standard wallet and exchange holders may not need to claim replacement tokens, but users with funds inside Harmony-based smart contracts should review and exit those positions before September 10.
Is Ethereum completely safe?
No. Ethereum offers a much larger security and infrastructure base, but applications, wallets, bridges and smart contracts can still introduce separate risks.
Final Take
Harmony's planned shutdown represents a major reversal for a blockchain that once positioned itself as an Ethereum competitor. The move combines a response to repeated security problems with a broader attempt to redirect the project toward AI-generated video.
The key question now is whether moving ONE to Ethereum can preserve meaningful utility for the token while giving Harmony a more sustainable path forward. For holders, the immediate priority is understanding the migration process and moving assets out of unsupported Harmony smart contracts before the deadline.
