Harmony said it plans to fully wind down its Layer 1 blockchain and shift its ONE token to Ethereum under a proposal tied to a new AI video initiative. The project said the decision comes after years of security threats and attacks dating back to its 2019 mainnet launch.

Under the plan, new ONE tokens would be airdropped on Ethereum and exchange listings would move there as well. Harmony said the transition would not require action from token holders, delegators, or validators, though users with assets in smart contracts are being told to withdraw before the shutdown process begins.

A strategic reset after years of pressure

Harmony framed the move as a broader reset rather than a routine upgrade. The team said it wants to replace its existing chain-based model with a proposed “remix economy” focused on AI video creation and distribution.

In that concept, creators would publish open prompts and assets, while fans could remix the originals and AI agents would turn those forks into multiple clips. Harmony said advertising in such a system could produce tens of millions of dollars if it reaches one million users, presenting the initiative as the main destination for the network’s token after the Layer 1 sunset.

How the token migration is supposed to work

The proposal calls for migrating ONE to Ethereum through an airdrop of new ONE tokens. Harmony said the distribution would be based on a snapshot covering wallet balances, delegations, rewards, smart contracts, and exchange-held tokens, with the new assets sent to the same addresses on Ethereum.

The project also said delegated stakes and unclaimed rewards would be airdropped into governor vaults. At the same time, exchange listings would be moved to Ethereum. Harmony said the token’s total supply and emission rate would remain unchanged, although newly issued tokens would be directed to the new initiative.

Validators offered compensation to wind down nodes

Validators are being invited to stop node operations starting on Sept. 10, 2026, and take on governance roles in the proposed new system. Harmony has set aside $1.37 million to compensate validators that sunset their nodes, sign the required agreements, keep their stakes in place, and transition to governors.

The compensation pool is one of the clearest operational details disclosed so far, signaling that Harmony expects validator participation to be central to an orderly shutdown of the existing network and the handoff to the Ethereum-based token setup.

What users can and cannot bring over

Harmony said not every onchain position can follow the token migration. Multisig safes, liquidity pools, and onchain applications cannot be moved to the new setup, according to the proposal.

Because of that limitation, users are being urged to exit all smart contracts by Sept. 10, 2026. Harmony said holders, delegators, and validators would not need to take steps for the token airdrop itself, but assets locked inside unsupported contracts fall outside that automatic migration path.

Next steps and current market backdrop

The immediate next confirmed date in the process is Sept. 10, 2026, when validators may begin shutting down nodes and users are expected to be out of smart contracts that cannot be migrated. The token snapshot and eventual Ethereum airdrop are intended to carry balances over without changing ONE’s overall supply schedule.

At the time of the announcement, ONE was trading at about $0.00073. That price point underscored the scale of Harmony’s proposed transition, which would end its Layer 1 in favor of a token presence on Ethereum tied to an untested AI video model.

Source: www.theblock.co