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Harmony to abandon its blockchain, citing the security cost of standing alone

Harmony has proposed abandoning its blockchain, citing the high security costs of running an independent network. The proposal assigns a cost to what independent chains normally handle on their own, according to the article.

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What happened

Harmony has proposed abandoning its blockchain, citing the high security costs of running an independent network. The proposal assigns a cost to what independent chains normally handle on their own, according to the article.

Confirmed

Global impact / market context

If Harmony leaves its blockchain, users and investors could lose access to their digital assets, and the value of Harmony's token may drop. This shows how high security expenses can push smaller crypto networks to merge or shut down.

Analyst inference

Crypto investors often favor larger networks that share security costs, making independent chains less competitive. Harmony's move may signal a trend of consolidation, affecting similar projects and prompting investors to reassess risks in smaller blockchains.

Analyst inference

What to watch

  1. The proposal itself is confirmed, but whether Harmony's community will approve abandoning the blockchain remains unconfirmed. Watch for voting results and official announcements from Harmony's team. Confirmed
  2. Watch for details on how Harmony plans to migrate users or secure funds, as the article only mentions the proposal's cost assessment. Any transition plan will be crucial for investors' assets. Proposed
  3. Watch whether other small blockchains follow Harmony's lead, as rising security costs may push them to join larger networks. This could change the competitive landscape and affect investor sentiment. Analyst inference

Evidence