The Ethereum-compatible network Harmony has submitted a non-binding proposal to shut down its Layer 1 blockchain and migrate its native token, ONE, to Ethereum. This decision comes seven years after the launch of its mainnet and weeks after a serious security incident that compromised its stability.
The Ethereum migration plan and the end of an era
Harmony has proposed to carry out a final capture of its network to issue ONE tokens under the ERC-20 standard on the Ethereum blockchain. According to the submitted document, all users' balances would be recorded in the final block of the current network. Subsequently, the new tokens would be airdropped to the same addresses on Ethereum, without the holders having to make any manual claims.
This move marks a turning point for the project, which launched its mainnet seven years ago promising high scalability and low fees. Layer 1 networks are independent blockchains that process and validate their own transactions. Migrating to Ethereum means giving up this independence to take advantage of the security of the leading network. If you want to better understand the differences between various networks, you can consult the free materials at [website/platform name]. Academy.
Direct impact on validators and the decentralized ecosystem
The proposal details that certain complex elements of the ecosystem will not be able to migrate automatically. On-chain applications, liquidity pools, and multi-signature vaults will be left behind. Therefore, the team has urged users to exit all smart contracts before September 10th to protect their assets.
As for the validators who keep the network operational, they will be offered several options: shut down their nodes, continue as governors in the new structure, or join a new AI-powered video initiative. To incentivize an orderly transition, a $1,37 million compensation fund has been set aside to cover operational and decommissioning costs.
Harmony's proposal highlights the growing difficulties alternative layer 1 blockchains face in maintaining security and liquidity in the face of Ethereum's dominance. The community must now vote on whether to approve this historic shutdown or seek alternatives for the network's future.
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