Seven years after its mainnet launch, Harmony has proposed a complete shutdown of its layer-1 blockchain and migrating its native ONE token to the Ethereum network as an ERC-20 asset. The proposal submitted on Sunday (Sept. 6, 2026) remains non-binding, and the team has not yet determined when the final block will be produced.
The network shutdown comes less than four weeks after an exploit minted nearly four billion counterfeit ONE tokens, representing roughly 26% of the total circulating supply. Around 2.8 billion of the attacker-minted tokens have reportedly already reached various cryptocurrency exchanges.
On August 17, 2026, Harmony drafted a plan to roll back the network to an August 11 checkpoint to erase the hacker’s footprint. That recovery plan required wiping 109,126 regular transactions and 315 user staking transactions. Now, the team has chosen a final step: ending its run as an independent blockchain rather than attempting further repairs.
What Moves and What Gets Left Behind
The majority of token holders will be included in an automated migration system. Wallet balances, staking delegations, validator rewards, centralized exchange balances, and smart contracts will be transferred without requiring manual claims. The migration process requires taking a final network snapshot, followed by issuing ERC-20 ONE tokens on Ethereum and adjusting exchange listings.
Technical constraints separate assets that can migrate from those left behind. Safe multisig wallets, liquidity pools, and on-chain applications cannot be migrated to Ethereum. Harmony has urged users to withdraw assets and exit all smart contracts before September 10.
Validators have been offered three exit options. They can cease operations, transition to a governor role, or participate in Harmony’s new AI-video initiative. A $1.372 million compensation pool has been established for validators who shut down their nodes on time before the September 10, 2026 deadline.
Strict Voting Requirements
The migration proposal is subject to network governance rules. The vote requires a minimum quorum of 51% of the total staked weight. The shutdown plan can only be executed if it secures 66.7% approval following a 7-day discussion period and a 14-day voting window.
Users with remaining assets in liquidity pools or on-chain applications have a narrow window until September 10. Past that deadline, stranded funds risk being trapped on a network no longer maintained by its developers. Reported by Cointelegraph.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
