Harmony has proposed shutting down the layer-1 blockchain and converting ONE into an ERC-20 token on Ethereum, a move that would end the network’s seven-year run as an independent chain.
The plan remains non-binding, and Harmony has not set a date for the network’s last block or said whether validators will vote on the proposal through the network’s governance process.
A final block would establish the balances used for the migration. Harmony would then distribute ERC-20 ONE to the corresponding Ethereum addresses without requiring holders to file claims, while exchange listings would also move to the Ethereum-based token.
The distribution snapshot would include wallets, centralized exchanges (CEXs), staking delegations, validator rewards, and smart contracts. Multisig safes, on-chain applications, and liquidity pools, however, cannot be transferred under the plan, and Harmony has told users to leave all smart contracts before Sept. 10.
Validators Can Begin Node Shutdowns Sept. 10 as Governance Role Changes
Node operators could start shutting down on Sept. 10, with Harmony reserving $1.372 million for validators that cease operations on schedule, keep their stakes, and agree to remain as governors. Validators could alternatively continue in governance or join Harmony’s new AI-video initiative.
Under Harmony’s published governance framework, elected validators may submit proposals. Unelected validators may vote, with voting power determined by total stake.
Approval under those rules requires participation representing 51% of total stake weight and 66.7% support. The process includes a seven-day introduction period followed by 14 days of voting. Harmony has not specified whether those procedures will apply to the proposed network retirement.
Exploit Preceded Harmony’s Proposal to Leave Layer 1
The proposed shutdown follows an exploit less than four weeks earlier that resulted in forged ONE and led Harmony to plan a rollback affecting more than 109,000 transactions.
Harmony said on Aug. 12 that it was considering reversing the chain after reports that an attacker had created nearly 4 billion unauthorized ONE, representing about 26% of the supply. At the time, an outside account estimated that roughly 2.8 billion of the tokens had reached exchanges, a figure Harmony had not confirmed.
Five days later, Harmony said it intended to restore the blockchain to an Aug. 11 checkpoint. That action would remove 109,126 regular transactions and 315 staking transactions from the chain.
Harmony added that the investigation traced nearly all counterfeit tokens to identifiable wallets or service endpoints and that the team was coordinating with bridge operators, exchanges, and law enforcement agencies.
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