On the final Harmony block, the project plans to lock all ONE coins held in wallets, delegated staking, smart contracts, and centralized exchanges, along with validator rewards. Then, it proposes to distribute ERC-20 token equivalents on Ethereum. Users will not need to apply for new coins—the ERC-20 ONE tokens will be sent to the same addresses captured in the final snapshot, the team promises. The total supply and emission rate of the token will remain unchanged, according to the developers.
Multi-signature wallets, liquidity pools, and on-chain applications cannot participate in the token migration, so users are advised to exit smart contracts before September 10. Validators will be able to begin closing nodes starting September 10. A compensation fund of $1.372 million has been allocated for them. Users are eligible for compensation if they closed their nodes on time, preserved their stakes, and continued operating as stewards. Payments will be spread over one year. Harmony has committed to covering the difference in emission rewards between the validator’s last block and the network’s last block.
The proposal remains non-binding for now, and the final block height has not yet been determined. For the proposal to be accepted, validators representing at least 51% of the total staked tokens must participate. The decision will be considered approved if it receives at least 66.7% of the votes after a seven-day review period. A 14-day voting window has been allocated for the vote.
Developers explained that they want to fold their blockchain due to threats from AI agents. Several weeks ago, hackers discovered a vulnerability in Harmony and exploited it, creating approximately 4 billion new ONE tokens. This prompted the Harmony team to perform a network rollback, removing over 109,000 transactions.
The Harmony team is inviting validators to join a new project focused on creating AI-generated video content. Node operators will be encouraged to generate, distribute, and moderate video content, earning staking rewards in return. Over the first year, Harmony plans to subsidize graphics processing units (GPUs). Developers estimate that operators’ total earnings during this period could reach $1 million.
After the attack on the Harmony blockchain, the anonymous blockchain sleuth ZachXBT refused to help the project for free. ZachXBT complained that after the hack of the Harmony Bridge in 2022, the project did not pay rewards to those who assisted in tracking the hackers.