Summary
- Harmony has announced it plans to shut down its blockchain due to escalating threats from AI and state actors.
- The company suggests migrating its ONE token to Ethereum and reallocating token emissions for an AI video initiative.
- This proposal is not mandatory; users are encouraged to withdraw from smart contracts by September 10.
In a significant move, Harmony, which was once a key competitor to Ethereum, has put forth a proposal to cease operations of its blockchain, citing increased risks posed by AI and state-sponsored threats.
This decision arrives at a time when the cryptocurrency sector is grappling with more advanced cyber threats facilitated by cutting-edge AI technologies, such as Anthropic’s Claude Mythos and OpenAI’s GPT-6 Astra.
"The risks from state actors and AI agents have become too significant," the Harmony Team stated on X. "Since launching our mainnet in 2019, our community has shown resilience against numerous attacks and changes, but now it is time to completely retire the Harmony network."
To address these threats, Harmony proposes transferring its ONE token to Ethereum, with plans to use newly generated tokens to support a new initiative called “The Remix Economy for AI Video.” Validators, responsible for confirming transactions, could take on governance roles or become involved in the AI video sector.
Founded in 2019, Harmony operates as a layer-1 blockchain utilizing proof-of-stake mechanisms, where validators stake tokens to secure the network, alongside sharding to process transactions more efficiently. This design aims to solve the "blockchain trilemma" by enhancing capacity without sacrificing security or decentralization.
Transitioning ONE to Ethereum
Harmony's migration plan includes taking a snapshot of balances at the final block to allocate replacement tokens on Ethereum for each holder. This will encompass all wallets, staked tokens, validator rewards, smart contracts, and centralized exchanges.
Replacement tokens will be airdropped to corresponding wallet addresses on Ethereum, while delegated stakes and unclaimed rewards will be directed to individual governor vaults. Additionally, listings on exchanges will transition to the new token.
While the proposal indicates that holders will not need to make a claim, users with assets tied up in smart contracts face a different timeline.
"Multisig safes, liquidity pools, and on-chain applications cannot be migrated; we urge users to withdraw from all smart contracts by September 10, 2026," the Harmony Team emphasized.
Moreover, Harmony plans to distribute funds to eligible validators and their delegators from a $1.372 million pool in four quarterly payments, contingent on validators maintaining their stakes, signing an agreement, and serving as governors.
"The total supply and emission rate of the ONE token will remain unchanged. Tokens generated through emissions will now be redirected to our new initiative, 'The Remix Economy for AI Video,' pending feedback from governors," the team noted.
AI's Role in Crypto Security
This migration initiative highlights the rising concerns over security in blockchain networks due to recent attacks.
In August, Harmony confirmed a security breach where an attacker created approximately 4 billion unauthorized ONE tokens. The team implemented a patch and considered rolling back the blockchain to restore an earlier state.
The post on X underscores the increasing involvement of AI in enhancing crypto security, as firms report suspected AI-facilitated attacks while developers leverage the technology to identify and rectify vulnerabilities.
In July, Coinkite, the maker of Coldcard wallets, suspected that an attacker exploited AI to discover a vulnerability that made wallet keys easier to guess—a flaw its own AI review did not detect. Following thefts exceeding $100 million, the company revamped its security measures in August.
In response to the Coldcard incident, developers established the Bitcoin Red Team to proactively identify vulnerabilities before they can be exploited. This group combines AI models, including Moonshot AI’s Kimi K3, with human oversight to review wallets, payment systems, and other Bitcoin software, privately informing developers of any flaws found.
The team has grown to around 20 to 25 volunteers, according to a pseudonymous member and developer named Calle, who mentioned that no issues have been detected in Bitcoin’s core protocol.
"The motivation behind the Bitcoin Red Team's formation is to stay ahead of attackers as swiftly as possible," Calle told Decrypt.