- Harmony network plans to close its Layer 1 and distribute replacement ONE tokens on Ethereum.
- Users must exit smart contracts by September 10 because applications and liquidity pools cannot move automatically.
- Soroush Pour says vulnerabilities are rising faster than defenses, which could lead to more breaches.
Harmony network plans to close its Layer 1 and reissue ONE on Ethereum after repeated security failures. The proposal follows an August exploit that forged trillions of tokens.
ONE traded near $0.00073 after the announcement. Users now face a September 10 deadline to leave affected contracts that cannot move automatically.
Harmony Network Maps ONE Balances for Ethereum Migration
The non-binding proposal would end the independent blockchain launched in 2019. Harmony has not announced a date for the final block.
The planned snapshot would record wallets, delegated stakes, rewards, smart contracts and exchange holdings. Replacement ERC-20 tokens would reach matching Ethereum addresses without separate claims.
Delegated stakes and unpaid rewards would enter individual governor vaults. Harmony says the total supply and emission rate would not change.
Liquidity pools, multisig safes and decentralized applications cannot be copied to Ethereum. The Harmony network therefore told users to exit contracts by September 10.
Validators may close nodes from that date. A $1.372 million pool would pay qualifying operators and delegators over four quarters.
Eligible recipients must retain stakes, sign agreements and accept governor roles. Harmony wants those roles linked to an AI video remix service.
Security Failures Add Pressure to Harmony Shutdown Plan
An August 12 flaw allowed attackers to replay valid cross-shard receipts. Harmony later reconstructed about 3.01 trillion forged ONE across six transactions.
BlockSec found attackers could change unsigned proof fields while authenticated details stayed intact. The Harmony network later restored a pre-attack checkpoint.
The episode followed the 2022 Horizon bridge theft of nearly $100 million. The FBI attributed that attack to Lazarus Group and APT38.
Cybersecurity executive Soroush Pour separately warned that vulnerability growth has outpaced defenses. He said that gap could produce more breaches.
Pour said Harmony Intelligence protects teams including Next.js, Town and 0x. The separate company combines AI security agents with oversight from human experts.
Harmony Intelligence previously reported an unauthenticated flaw affecting self-hosted Next.js servers. Its researchers said the issue was responsibly disclosed and patched.
The security company is distinct from the Harmony network discussed in the shutdown proposal.
Published governance rules require 51% stake participation and 66.7% approval. Harmony has not confirmed whether a formal vote will decide the shutdown.
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