Harmony has proposed sunsetting its Layer 1 network, taking a final network snapshot and migrating its ONE token to Ethereum as an ERC-20 asset. The plan, announced on September 6, 2026, is non-binding and would mark the end of Harmony's standalone chain if carried out.
The proposal comes after an August incident involving forged ONE tokens. It also lays out a near-term timetable for validators: they may begin shutting down nodes on September 10, according to reporting by The Block.
Harmony has not presented the proposal as an already completed migration. Its announcement describes a prospective final snapshot and a move of ONE onto Ethereum, where the token would operate in ERC-20 form.
Harmony’s proposed snapshot and ERC-20 ONE migration
In its September 6 announcement, Harmony said it was proposing to sunset the Layer 1, conduct a final network snapshot and migrate ONE to Ethereum. The snapshot would be central to determining the positions covered by the proposed transition.
The stated destination is Ethereum rather than a replacement Harmony network. ONE would be represented as an ERC-20 token, bringing the asset onto Ethereum’s token standard while Harmony winds down the Layer 1 under the proposal.
The validator timeline is more immediate. Validators may start closing their nodes from September 10, four days after the announcement, though the overall proposal remains non-binding.
That distinction matters to holders and network participants: the proposal outlines the intended mechanics and an available shutdown date for validators, but does not establish that every part of the migration has already been executed.
Which Harmony balances would move to Ethereum — and which would not
The proposed airdrop would send Ethereum-based ONE to the same wallet addresses. According to Cointelegraph, the intended coverage includes wallet balances, staking delegations, validator rewards, smart contracts and centralized exchanges.
The inclusion of staking delegations and validator rewards indicates that the proposal reaches beyond simple wallet-held balances. Smart-contract positions are also listed among the categories that would be covered, while centralized exchanges are included in the migration scope described in the report.
Several structures would be left out. Multisig safes, liquidity pools and on-chain applications would not be migrated under the proposal.
Those exclusions draw a line between balances and positions that Harmony intends to reflect through Ethereum-based ONE and parts of the existing on-chain environment that would not move with the token migration. The proposal therefore does not describe a wholesale transfer of all applications and pooled arrangements from Harmony’s Layer 1 to Ethereum.
Forged ONE tokens and the proposed August rollback
Harmony’s shutdown proposal followed an August 2026 exploit involving forged ONE tokens and combines a rollback with a final network snapshot and a potential migration of ONE to Ethereum as an ERC-20 token. The proposed migration is tied to winding down Harmony’s Layer 1 after the security event. Harmony said the rollback from the August 11 checkpoint would discard 109,126 regular transactions and 315 staking transactions, according to Cointelegraph, for a total of 109,441 transactions across the two categories.
Validator compensation and Harmony’s AI-video pivot
Harmony has proposed a $1.372 million compensation pool for validators that cease operating, retain their stakes and move into governance roles. The compensation is therefore attached to three conditions: stopping operations, keeping stakes in place and transitioning to governance participation.
The plan combines an operational wind-down with a revised role for those who operated the network’s validator infrastructure, while specifying a dollar amount for the proposed pool rather than leaving the validator arrangement undefined.
Harmony said the broader pivot would support a new AI-video initiative. In explaining why it proposed ending the standalone network, the project cited growing security threats from state-backed attackers and AI agents, The Block reported.
The proposal thus links the Layer 1 sunset to both the forged-token episode and Harmony’s stated assessment of a more difficult security environment. Its planned focus, if the proposal advances, is an AI-video initiative rather than continued operation of the independent chain.
