Harmony Announces Deadline for ONE Token Holders to Exit DeFi Positions Before Ethereum Migration

The closure of Harmony's Layer-1 network and migration to Ethereum could reshape the DeFi landscape for token holders.

• Harmony announced a September 10, 2026 deadline for ONE token holders to exit DeFi smart contracts.
• Users must withdraw assets from liquidity pools and decentralized applications as these cannot be migrated automatically.
• A final blockchain snapshot will capture wallet balances, with equivalent ERC-20 ONE tokens issued on Ethereum.

• Harmony launched its Layer-1 blockchain in 2019, focusing on scalability through sharding.
• In August 2026, a security exploit led to the minting of over 3 trillion unauthorized ONE tokens, prompting a rollback of 141,000 blocks.
• The project aims to redirect resources toward an AI video "remix economy" initiative, citing ongoing security threats.

On September 6-7, 2026, Harmony's protocol team published a non-binding proposal to sunset its Layer-1 mainnet. This decision comes in the wake of a significant security breach that resulted in the unauthorized minting of over 3 trillion ONE tokens, leading to an estimated loss of $3.2 million. The exploit raised serious concerns about the network's security, prompting the team to consider a rollback of over 141,000 blocks.

The upcoming migration to Ethereum is designed to provide a more secure and robust environment for ONE token holders. By September 10, 2026, users must manually withdraw their assets from liquidity pools, multisig vaults, and decentralized applications. This is crucial because these positions cannot be automatically migrated during the network's closure. Instead, a final blockchain snapshot will be taken to record all ONE balances, which will then be replaced with equivalent ERC-20 ONE tokens on Ethereum. This transition aims to streamline the user experience and enhance security.

Validators will also play a critical role in this transition. They are expected to begin shutting down their nodes on the same date and will qualify for compensation from a dedicated pool of $1.372 million, which will be disbursed over four quarterly installments. This compensation is designed to incentivize validators to cooperate with the migration process and ensure a smooth transition for all users.

Centralized exchanges are expected to coordinate with Harmony to facilitate the transition of listings. However, as of now, no final block date or airdrop execution timeline has been confirmed, leaving some uncertainty in the community. The proposal remains subject to community governance, meaning it could evolve based on user feedback and governance decisions.

• ONE token holders: Must act quickly to withdraw assets or risk losing them.
• DeFi investors: Those involved in liquidity pools and decentralized applications will need to navigate the migration process.
• Validators: Will need to shut down nodes and may receive compensation for their participation.
• Centralized exchanges: Must coordinate with Harmony for a smooth transition of token listings.

• Community governance decisions: These will determine any changes to the migration plan and could impact timelines.
• Market reactions: Watch for price shifts in ONE tokens as the deadline approaches and the migration unfolds.
• Security developments: Any new exploits or vulnerabilities could affect the transition and user confidence in the Ethereum network.