Harmony, a network once positioned as an Ethereum competitor, is proposing to voluntarily shut down its Layer 1 blockchain, with developers arguing that state actors and AI agents have made network security too difficult to maintain. According to CoinDesk, the team plans to redirect ONE emissions into an AI video business CoinDesk. The move marks a stark reversal for a project that previously attracted significant attention as a would-be rival to Ethereum, and it reflects growing pressure on alternative Layer 1 networks to justify their continued operation amid a rapidly evolving technological landscape.
The decision to wind down the chain comes as AI capabilities have advanced to the point where core contributors believe securing a public blockchain against sophisticated automated threats is no longer feasible. Rather than attempting to fortify the network against these forces, Harmony’s developers are seeking to sunset the infrastructure entirely and funnel its existing token economics toward a new commercial focus in artificial intelligence-generated video. The pivot represents one of the more dramatic strategic shifts in the sector, effectively trading decentralized ledger operations for a centralized AI media venture powered by the same token issuance schedule.
Harmony is not the only infrastructure project retreating from the sector this week. Router Protocol, which had backing from Coinbase, announced it is shutting down after failing to establish a viable path forward. According to The Block, attempts to commercialize, license, or sell the technology did not produce a sustainable business, prompting the team to burn 303 million ROUTE tokens as part of the closure The Block. The token burn represents an effort to return value to holders as the protocol ceases operations entirely.
Taken together, the two announcements illustrate a broader contraction in the Layer 1 and infrastructure space, where early-stage networks and cross-chain protocols that once commanded significant investment are now confronting harsh commercial realities. While Harmony is attempting to repurpose its token and community toward an AI venture, Router Protocol is exiting the market altogether after exhausting its strategic options.
The developments suggest that the infrastructure layer of the crypto industry is entering a consolidation phase, with only projects that can demonstrate clear, sustainable utility or successfully pivot to new verticals managing to survive. For Harmony, the bet is that artificial intelligence offers a more defensible business than operating a public blockchain in an environment increasingly shaped by automated threats. For Router Protocol, the inability to monetize its technology or find a buyer has led to a complete unwind, adding to the list of well-funded crypto infrastructure projects that have failed to achieve long-term viability despite early exchange and venture support.