Harmony has proposed shutting down its Layer 1 blockchain and migrating its native ONE token to Ethereum, marking a major change for the network less than a month after an exploit created billions of unauthorized ONE tokens.

Under the proposal announced Sunday, Harmony would take a final snapshot of the network, retire its blockchain, and issue ONE as an ERC-20 token on Ethereum. Holders would not need to submit claims, with replacement tokens planned for the same addresses recorded in the final snapshot.

The plan remains non-binding, and Harmony has not announced a final block date. Validators could begin shutting down their nodes on September 10 as the project moves toward the proposed transition.

Harmony Cites Security Threats Behind Network Shutdown

Harmony said threats from state-level attackers and AI agents have become too difficult to manage as an independently operated blockchain.

The project launched its mainnet in 2019 and has faced multiple security incidents during its operation. The latest proposal comes weeks after an exploit involving forged ONE tokens forced Harmony to consider rolling back more than 109,000 regular transactions.

Harmony’s proposal would effectively end the network’s role as an independent Layer 1 while keeping ONE alive on Ethereum.

The team has not said that the recent exploit alone caused the shutdown decision. Instead, it cited the broader security threats facing the network.

ONE Holders Would Receive Ethereum-Based Tokens

The proposed migration would use a final blockchain snapshot to record ONE balances across the network.

The snapshot would include:

• ONE held in user wallets
• Staking delegations
• Validator rewards
• Tokens held by smart contracts
• ONE held on centralized exchanges

Harmony says users would not need to claim the new tokens. Once the final snapshot is completed, the proposed Ethereum-based ONE tokens would be distributed to the corresponding addresses.

The proposal would leave the project’s total ONE supply and emission rate unchanged. Harmony also plans to publish the Ethereum token contract, snapshot calculations, and airdrop scripts for review.

However, the migration would not cover every asset or application connected to the Harmony network.

The proposed process cannot move multisignature safes, liquidity pools, or on-chain applications. Harmony has therefore urged users to exit smart contracts before September 10.

Validators Could Shut Down Nodes on September 10

Harmony is also proposing a transition plan for its validators. Validators could begin shutting down their nodes from 7 a.m. Pacific Time on September 10. 

The project has set aside $1.372 million to compensate eligible validators and delegators who stop operating on schedule, sign the required agreement, maintain their stake, and continue as governors.

The compensation would be distributed over four quarters and would cover the difference between the validator’s final issuance rewards and the rewards it would have earned through the network’s final block.

Validators would also have the option of moving into new roles within Harmony’s proposed post-Layer-1 structure.

Harmony Plans AI Video Business After the Shutdown

The proposed network shutdown is tied to a broader change in Harmony’s business direction.

The project plans to build an AI video initiative called the ‘Remix Economy’, where creators would publish prompts and other assets that users could remix. AI agents would then generate additional video content from those branches.

Harmony says operators could handle video generation, distribution, and content moderation. Operators would be required to stake tokens and meet service uptime requirements to receive rewards.

The project also plans to subsidize GPU hardware during the first year. Harmony has described a potential $10 monthly subscription model, while promoters could receive a 30% ongoing commission from subscriptions generated through their referrals. Under the proposed plan, future ONE emissions would be directed toward the new initiative.

Shutdown Proposal Follows August ONE Exploit

The decision comes shortly after Harmony faced a major token-minting incident. In August, unauthorized transactions created billions of forged ONE tokens. Harmony later identified a flaw in cross-shard receipt verification that allowed valid receipts to be processed more than once, creating ONE without a matching debit elsewhere.

Harmony subsequently proposed rolling back its network to checkpoints from August 11. The rollback would remove more than 109,000 regular transactions and 315 staking transactions. The project said much of the affected activity involved automated transactions, including activity connected to decentralized exchange systems.

The latest proposal represents a different approach. Instead of continuing to operate Harmony as an independent blockchain, the project would preserve ONE through an Ethereum-based token while ending the Layer 1 network.

What Comes Next

The immediate focus is whether Harmony’s proposal passes governance and when the final network block will be produced. For ONE holders, the proposed migration would remove the need for a manual token claim, but it does not mean every Harmony-based asset or application would move to Ethereum. 

Multisig safes, liquidity pools and onchain applications are excluded from the migration, making the September 10 deadline important for users with assets inside those contracts. Validators also face a decision over whether to shut down their nodes, continue as governors, or move into roles connected to Harmony’s proposed AI video business.

If approved, the plan would end Harmony’s seven-year run as an independent Layer 1 while keeping ONE alive as an Ethereum token. The final outcome will depend on governance approval, the network’s final block, and the execution of the proposed token migration. For now, Harmony’s announcement is a proposal rather than a completed shutdown.

What This Means for You: If you hold ONE, check whether your tokens are held directly in a supported wallet or inside a multisig safe, liquidity pool, or other onchain application. Assets held in excluded contracts may require separate action and could be affected by the September 10 deadline.

Validators should review Harmony’s governance proposal and decide whether to wind down their nodes, continue participating as governors, or pursue the proposed transition into other roles. All users should wait for official instructions before moving funds or assuming the migration is complete.