Harmony proposes shutting down layer 1, migrating ONE to Ethereum
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Harmony, an Ethereum-compatible layer-1 blockchain, proposed shutting down its network and migrating its native ONE token to Ethereum by issuing ERC-20 ONE tokens. The proposal includes taking a final snapshot of the Harmony blockchain, migrating exchange listings, and offering validators options to stop nodes, become governors, or join a new AI-video project. The plan is non-binding, with no defined timeline or confirmed governance vote yet.
Why it matters
The development signifies a potential end to Harmony as an independent blockchain, shifting its native token and activity onto Ethereum. This may affect current Harmony users, validators, and decentralized applications, though the source does not explicitly state wider market or policy impacts.
Key context
The proposal follows a recent major exploit where nearly 4 billion forged ONE tokens were minted, leading Harmony to plan a blockchain rollback to an August 11 checkpoint. This rollback would invalidate over 109,000 transactions but the migration proposal marks a shift from repairing Harmony to possibly ending network operations.
Key numbers and entities
Harmony, ONE token, Ethereum, validators, and a $1.372 million compensation pool for validators stopping on time are mentioned. The proposed rollback would discard 109,126 regular and 315 staking transactions. The exploit involved about 4 billion forged ONE tokens, roughly 26% of the supply.
What remains unclear
The timeline for the network shutdown, details on the governance vote process for approval, and the full implications for multisig safes, liquidity pools, and onchain applications remain unspecified. It is also unclear how exchanges and users will handle migration logistics and any potential claims.