Harmony is proposing to retire its layer-1, seven-year old blockchain. It will move ONE over to Ethereum. From Sept. 10, validators can begin to shut down nodes in preparation for a new AI business.
The following is a summary of the information that you will find on this page.
- Harmony proposes retiring layer 1, and issuing ONE on Ethereum as an ERC-20 token after taking a last network snapshot.
- The users have been told to terminate smart contracts by September 10, but validators who are eligible can start shutting down the nodes, and they will receive compensation of $1.372million.
- Harmony has been planning a rollback to remove over 109,000 transactions after Harmony was prompted by an exploit that created forged ONEs.
- Harmony intends to offer validators an option of remaining as governors, or participating in Harmony’s new AI-video initiative once the blockchain has been retired.
Harmony announced Sunday it would take a snapshot of the entire network and issue the ERC-20 Token ONE on Ethereum. It also plans to move the exchange listings over to this new token. This proposal is non-binding and there has been no date set for the last block.
Harmony would cease to exist as a standalone blockchain once its mainnet is launched in 2019. In announcing their proposed shutdown, the project mentioned security threats by AI and state agents.
Harmony is yet to confirm whether or not the plan will go through their existing governance process. According to the published network guidelines governance According to the rules, validators who are elected can make proposals while validators that have not been chosen can vote. Voting power is determined based on stake. The proposal must have 51% support and 66.7 percent participation after the seven-day introduction phase and fourteen-day voting stage.
Harmony wants to move ONE balances from Ethereum
The final Harmony Block will be used to track ONE tokens held by wallets as well as staking delegations, validator awards, smart contracts and centralized trading platforms.
No claims would be required by users. Harmony announced that ERC-20 ONE will be sent to the addresses in the final snapshot. Meanwhile, delegated stakes as well as unclaimed validator awards would be distributed into individual governor vaults.
Under the proposed proposal, token total supply and emission rates would not change. Harmony will make public the Ethereum token contracts, airdrop scripts and snapshot calculations so that these can be verified.
There are some assets or applications that cannot make the transition. The project has stated that multisig safes and liquidity pools, as well as onchain applications, cannot be moved through the migration. Users are being asked to terminate smart contracts prior to September 10th.
Harmony has proposed to migrate centralized exchange listings from ONE to Ethereum.
Validators will have a different transition. Node operators may begin to shut down their nodes as early as September 10, and Harmony will set aside $1,372 million in funds for validators or delegators that stop their nodes by the deadline, sign a contract, keep their stakes, and continue their governorship.
Compensation would be spread over four quarters. Harmony will pay the difference between an operator’s last emission block and that of the network for those operators who are eligible.
Harmony’s AI project could be moved to the validation stage
Harmony is moving toward AI-based video “remix economy” After the retirement of the blockchain, validators can choose to stay as operators in the project or become affiliates.
According to the model outlined by the team, small groups of video producers would create prompts or other assets which fans could remix. Artificial intelligence agents could then transform the video clip branches created into other videos.
Operators will be in charge of video production, distribution and moderation. Staking and service uptime are tied to rewards. Harmony intends to subsidise GPU hardware for the first year. Operators could earn up to $1,000,000 in revenue combined during this period, if they meet the proposed uptime and restaking requirements.
Promoters of the project will receive a 30% commission on all subscriptions they bring in. Harmony stated that advertising revenues could be in the tens and millions of dollars range if 1,000,000 users were reached.
The team stated that the arrangement would still be subject to governor feedback.
Harmony shut down proposal after August 1 exploit
Harmony is considering a shutdown after a August security event that forced them to think about reversing the days of activity on their blockchain. Unauthorized ONE had entered circulation.
Crypto.news reported on Aug. 12 that Harmony had been a victim of terrorism. investigating an unauthorized mint After an independent researcher reported that nearly 4 billion ONE were created, and about 2.8 billion reached centralized exchanges. Harmony hadn’t confirmed any figures at that time, but said they were working with the exchanges and examining recovery methods.
Upon reconstruction, the project found more than 3 trillion ONE across six transactions. Harmony traced this incident back to a bug in receipt cross-shard verification, which allowed receipts valid to be processed multiple times. This resulted in ONE being created without a corresponding credit elsewhere.
On August 17, the project settled on a more disruptive approach. Harmony proposed rolling back Its two shards at the checkpoints was recorded on 11:25.37 pm UTC before the forgery activity.
In the case of shard 0, validators are instructed to hold block 92.730.034 and then restart at 92.730.034. Shard 1 will return to block 94.982.278. It then resumes from block 94.982.288, even though it is not the original shard.
This recovery will remove 141 628 consecutive blocks of shard 0, containing 315 stake transactions, and 109 126 regular transactions. Harmony’s analysis classified 104,545 transactions as automatable activity (95.8%), including almost 100,000 transactions associated with decentralized exchange automation.
Within 106 second, a wallet attached to the forged currency attempted 534 transactions of 5 billion ONE. Harmony’s investigation found that 477 of those attempted transfers were successful, resulting in a total transfer value of 2.385 trillion One.
Investigators tracked the tokens to standalone wallets as well as exchange accounts, pools and routers of decentralized exchanges, positions held by liquidity providers, bridge contracts and wrapped ONE wallets. Harmony stated that it worked with bridges, exchanges and the law to try and identify where the fake assets had been moved.
This process included examining token migration as a recovery option. Harmony, however, said that moving ONE to ONE’s original location would have caused much more disruption. In less than a week, the migration plan has been revised to include Ethereum as part of its proposed retirement strategy.
Harmony is the victim of repeated incidents of tokens and bridge security.
Harmony was not the first to have unauthorized ONE generated. A staking error in December 2023 led to 146.28 Million ONE being created across 74 addressees before an emergency fork.
Harmony’s largest security breach happened in 2022. Attackers stole over $100 million dollars from the Horizon cross-chain Bridge after taking control keys.
After the attacks, this project collaborated with blockchain companies and exchanges as well as law enforcement. raised its hacker bounty The assets could be worth up to $10 Million.
Harmony originally considered creating billions ONE as a way to compensate users who were affected by Horizon’s attack. In a proposal released the next month, Harmony included an option that would reimburse users affected by the Horizon attack. mint 4.97 billion ONE Community members who are concerned about the dilution of their values have opposed compensation.
Harmony’s course had been altered by September 2022. revised recovery plan The project would not issue additional ONE tokens or change the economics of the token through a fork. Projects instead suggested using Treasury funds to recover and develop ecosystems.
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Source: crypto.news
