Harmony has announced plans to fully sunset its Layer 1 blockchain and migrate its native ONE token to Ethereum as part of a proposed pivot into an AI video business. The proposals represent a major strategic shift for the network, which launched its mainnet in 2019 with a focus on cross-sharding scalability and later expanded into decentralized bridge infrastructure.

The project cited escalating security threats from state-backed attackers and AI agents as a motivating factor. The decision follows an August exploit in which attackers were able to mint more than 3 trillion unauthorized ONE tokens. The network subsequently rolled back to a block preceding the exploit, a measure that effectively reversed transactions after the attack and underscored the operational risks facing smaller Layer 1 networks that must secure their own validator ecosystems.

Ethereum Token Migration

Under the proposal, Harmony would create new ONE tokens on Ethereum and airdrop them to matching wallet addresses following a final network snapshot. Holders, delegators, and validators would not be required to actively claim the new tokens. Migrating to Ethereum as an ERC-20 token would shift responsibility for consensus security to the largest smart-contract network, a path previously taken by other projects that concluded that maintaining an independent chain was no longer viable.

The migration plan also accounts for balances held on centralized exchanges, staking delegations, and validator rewards. However, Harmony stated that multisignature wallets, liquidity pools, and on-chain applications cannot be migrated.

Users have been urged to exit affected smart contracts before September 10, the date on which validators may begin shutting down their nodes.

The proposal would leave ONE's total supply and issuance rate unchanged. Future token issuance would instead be directed toward supporting Harmony's proposed new business.

AI Video Pivot

Harmony intends to build an AI video "remix economy" centered on creators, users, and AI agents. Creators would publish prompts and source assets, while users could remix those materials into derivative videos. The plan aligns with a broader wave of crypto projects redirecting resources toward AI-driven consumer products, though the space is already contested by well-funded centralized platforms in generative video.

The project also plans to recruit operators responsible for video generation, distribution, and content review. Harmony has proposed a $1.37 million compensation pool for eligible validators that shut down their nodes, retain their stakes, and transition into governance roles.

The AI initiative is intended to establish a new revenue model built around video creation and advertising. Harmony has suggested that advertising could generate tens of millions of dollars in revenue if the platform reaches one million users.

The proposals remain non-binding, meaning the final shutdown, token migration, and business structure are all subject to further governance decisions. Key open questions for holders include the timing and mechanics of the snapshot, how exchange-held balances will be credited, and whether validator participation meets the level needed for an orderly shutdown.