Exchange Ranking
Top Exchanges
24h Volume Ranking
Popularity Ranking
Exchange BTC Balance
Proof of Reserves
Decentralized Exchanges
Funding Rate
Funding Heatmap
Liquidation Data
Max Pain
Long/Short Ratio
Whale L/S Ratio
Binance/Okex/Huobi L/S
Bitfinex Margin L/S
ETF Tracker
Solana ETF
XRP ETF
Hong Kong ETF
Bitcoin Treasuries
Crypto Reversal
Ethereum Reserves
HyperLiquid Wallet Analysis
Hyperliquid Whale Watch
Large Transactions
On-chain Movement
Bitcoin ROI
Stablecoin Market Cap
Options Analysis
News
Articles
Economic Calendar
Features
Wallet
Contract Calculator
Security
Collections
Watchlist
Following
SCRT Core Points
Secret Network has announced plans to migrate its SCRT tokens from Cosmos to Arbitrum, the Ethereum second-layer solution.
The decision stems from a $4.7 million bridge hack in June this year, which exposed serious security flaws.
Developers warn that artificial intelligence technology is accelerating the discovery and exploitation of weaknesses in legacy code.
Since 2021, the total locked value of the Cosmos ecosystem has plunged 88%, while Arbitrum still maintains a safe asset size of US$17.4 billion.
Within 24 hours of the migration announcement, the price of the SCRT token fell sharply by 24%, and is currently worth approximately US$0.041.
Secret Network, the privacy public chain, announced its migration from Cosmos to Arbitrum.
The blockchain Secret Network, which focuses on privacy protection, has revealed its intention to abandon the Cosmos ecosystem and switch to Arbitrum, a second-layer expansion solution for Ethereum. The migration proposal, announced on July 7, is only a few weeks after hackers successfully used the bridge vulnerability to steal $4.7 million in digital assets.
According to the development team, security concerns were the main driving force behind this strategic shift. Although Secret Network has been based on Cosmos since 2020, the organization now believes that the ecosystem\'s changing environment and aging infrastructure pose unacceptable risks.
\"Security risks are our top priority,\" the team wrote.\"Old code is becoming easy to analyze.\" Developers specifically pointed out that artificial intelligence is becoming an emerging vulnerability factor. Modern artificial intelligence systems can efficiently analyze smart contract code, identify logical flaws, and generate usable attack scripts at unprecedented speeds.
A bridge attack in June targeted the Axelar-Secret IBC connection, resulting in the theft of $4.7 million worth of bridge tokens. While the team emphasized that core SCRT tokens and underlying privacy technologies remain secure, the incident demonstrated the risks inherent in maintaining outdated code in a shrinking ecosystem.
Cosmos ecosystem indicators continue to decline
Since reaching its peak in 2021, the Cosmos network has experienced a significant decline. The total locked value of all Cosms-based chains is currently approximately US$2 billion, a drop of 88% from peak levels. According to DefiLlama, the value of Secret Network\'s own lockup is only US$1.3 million.
In sharp contrast, Arbitrum is currently locked up with a value of US$17.4 billion, which establishes its position as the leading Ethereum Layer 2 network based on L2Beat\'s metrics.
The development team pointed out that both developers and liquidity providers have gradually left Cosmos. Previously reliable infrastructure and tools have been degraded, while several well-known projects have withdrawn from the ecosystem.
Secret Network joins a growing group of quits from Cosmos. Stable coin infrastructure Noble announced its migration to Ethereum in January. NilChain, which focuses on privacy, completed its transition to Ethereum in February. Sei Networks completed its comprehensive migration from Cosmos to Ethereum in June.
Technology migration details and token economics
If the governance proposal is approved by the community, SCRT Labs plans to take a snapshot of all SCRT token balances on September 1. This snapshot will determine eligibility for the new ERC-20 compatible SCRT token launched on Arbitrum.
Native SCRT positions and pledged tokens will be eligible to participate in the migration. However, bridged SCRT variants, sSCRT, contract position balances, and IBC-based assets will be excluded. Token holders must ensure that their assets are in qualifying form before the snapshot deadline.
Post-migration token economics will reduce inflation from 9% to 5% per year. SCRT will maintain its role as the main governance token on the new platform.
Official development support for the existing Cosms-based Secret first-layer blockchain will end on September 1. If an independent verifier chooses to maintain the infrastructure, the legacy chain can theoretically continue to operate.
The relocation proposal is awaiting a formal community vote. This transition cannot proceed without governance approval.
Market response to the announcement was generally negative. In the first 24 hours after the news was announced, SCRT prices plunged about 24% to stabilize around $0.041. This valuation is a staggering 99% drop from the token\'s all-time high in 2021.
As part of the transition process, the Secret Network\'s development team has committed to releasing the network\'s complete source code under the open source licensing framework.
