Harmony to Shut Down Blockchain, Migrating ONE Tokens to Ethereum

Harmony, the blockchain network launched in 2019, is set to shut down its operations and migrate its native token, Harmony (ONE), to the Ethereum network as an ERC-20 asset. The decision comes amid concerns over security threats posed by state actors and artificial intelligence agents.

Validators are advised to begin powering down their nodes starting September 10. The network has faced significant challenges, including a major exploit in August that minted approximately 4 billion ONE tokens, leading to a drastic drop in value. Additionally, a breach of its Horizon Bridge in 2022 resulted in a loss of nearly $99.6 million.

In the migration process, Harmony will take a snapshot of token holders' balances at the final block and automatically airdrop the new tokens to the same Ethereum addresses. However, users are encouraged to exit all smart contracts by September 10, as multisig safes, liquidity pools, and on-chain applications will not transfer with the tokens.

As part of its future plans, Harmony aims to fund an AI video venture called The Remix Economy, which is designed to create an open library of prompts and assets for users to build upon. Despite these changes, the price of ONE has not seen a positive response, remaining significantly lower than its previous values.