Crypto· Blockchain

Harmony Cites AI Threats in Proposed Blockchain Shutdown

Harmony, a major layer-1 blockchain network, has announced plans to shut down its blockchain operations and migrate its ONE token to Ethereum, citing escalating security threats from AI-enabled attackers and state actors. The team proposes redirecting token emissions toward an AI video initiative while offering validators governance roles or participation in the new business venture.

By AI NewsroomPublished about 19 hours agoUpdated about 19 hours ago3 views

Harmony Cites AI Threats in Proposed Blockchain Shutdown

Why It Matters

This shutdown illustrates growing security challenges facing blockchain networks as AI tools become more sophisticated weapons for attackers, prompting established crypto projects to fundamentally restructure their operations. The move also reflects a broader industry pivot toward AI-adjacent businesses, with Harmony choosing to abandon its original mission rather than continue defending against increasingly capable threats.

Key Facts

Proposed blockchain shutdown date: September 10, 2026
Network launch year: 2019
Unauthorized tokens created in August exploit: Approximately 4 billion ONE tokens
Validator compensation pool: $1.372 million in quarterly installments
Migration destination: Ethereum blockchain

Harmony, once positioned as a significant Ethereum alternative, announced it will cease blockchain operations and migrate its ONE token to the Ethereum network. The team cited mounting threats from artificial intelligence-powered attackers and state actors as the primary reason for the decision, marking a dramatic reversal for a project that launched in 2019 with ambitions to solve the blockchain trilemma through innovative proof-of-stake and sharding technologies.

The migration process will create a snapshot of all ONE token balances at the network's final block, with replacement tokens airdropped to holders' Ethereum addresses. The plan encompasses wallet balances, staked tokens, validator rewards, and exchange listings. However, users maintaining assets in smart contracts, multisig safes, and liquidity pools face a separate challenge—they must exit these applications before the September 10 deadline, as these positions cannot be automatically migrated to the new chain.

Rather than winding down entirely, Harmony proposes pivoting toward what it calls "The Remix Economy for AI Video," with newly issued tokens funding this initiative. Current validators would be offered opportunities to assume governance roles or join the AI-video business. The team also committed to compensating eligible validators and delegators through a $1.372 million pool distributed quarterly, conditional on validators maintaining their stakes and serving as governors.

The announcement reflects broader cryptocurrency industry concerns about AI-enabled security threats. Harmony previously suffered an exploit in August when attackers created approximately 4 billion unauthorized ONE tokens. This incident exemplifies vulnerabilities the broader crypto ecosystem faces as attackers employ AI tools to identify flaws. The Coldcard wallet hack similarly revealed that AI-assisted attacks can sometimes find vulnerabilities that AI security reviews miss, prompting the formation of Bitcoin's Red Team—a group combining AI models with human expertise to identify and report blockchain security flaws to developers before attackers can exploit them.