Secret Network proposes to move SCRT to Arbitrum, AI vulnerability risk reshapes security priority

Secret Network proposes to migrate SCRT tokens from Cosmos to Arbitrum

Secret Network proposes to migrate its SCRT tokens from the Cosmos ecosystem to Arbitrum, the Ethereum second-layer network, marking an important turning point for this privacy-focused blockchain. The plan has been released on the official Secret Network forum and still needs to be approved by a community governance vote.

According to the proposal, a snapshot of eligible SCRT balances will be taken on September 1, 2026. After the snapshot is complete, a new version of the ERC-20 standard SCRT will be released on Arbitrum. The team stated that native SCRTs, SCRTs in pledge, and SCRTs in the process of unbundling will all be included, while versions in the form of multiple encapsulation, cross-chain bridges, or contracts will not automatically qualify.

Security Issues Promote Migration Proposal

Secret Network stated that the main reason for promoting this migration is security risks. The team believes that as the capabilities of artificial intelligence systems improve, old blockchain code and legacy integrations will be easier to review. In their view, attacks that used to require in-depth human research are now significantly less costly-AI can help attackers interpret contracts, track logical assumptions and identify forgotten marginal situations.

This concern became even more urgent after the Axelar-Secret IBC Bridge vulnerability attack in June 2026. According to the Secret Network proposal, the vulnerability affects bridged integrated systems rather than native SCRT, core privacy protocols or confidential computing models. The team saw the incident as a warning: in an ecosystem where maintenance depth has diminished, old integration paths, trusted bridging assumptions, and legacy code all pose risks.

Similar bridging security incidents have recently prompted other DeFi projects to switch security service providers. For example, Solv Protocol transferred more than $700 million of its tokenized bitcoin assets to Chainlink CCIP after encountering a security incident related to LayerZero.

For the Secret Network, this broader context strengthens its argument: token infrastructure must be placed in an ecosystem with stronger surveillance, deeper liquidity, and more active security guarantees. The question is not only whether a chain can continue to grow, but also whether the entire environment in which the asset is located is safe enough for holders, exchanges, wallets, custodians and developers.

Arbitrum is seen as a more solid cornerstone of SCRT

Secret Network was launched on Cosmos in 2020, at a time when the application chain, IBC and CosmWasm were gaining momentum. The team now says the environment has changed. Liquidity has become thin, some developers have migrated to other ecosystems, and the infrastructure around Cosmos is no longer as capable of meeting the long-term needs of SCRT as it used to be.

Arbitrum was chosen because it allows SCRT to connect to the broader Ethereum ecosystem. The team highlighted deeper liquidity, stronger wallet and exchange support, better development tools, and a larger developer base as reasons for the proposed migration. If approved, SCRT will become the ERC-20 token on Arbitrum and no longer be mainly attached to its Cosms-based chain.

Arbitrum also demonstrated governance-level resilience after major DeFi incidents. In a recent case, the Arbitrum DAO approved the release of approximately $71 million in frozen ETH for use in the recovery process from a Kelp DAO attack. This also echoes the overall direction of Secret Network in 2026. In its roadmap, the project says it will focus on confidential computing, SecretAI and SecretVM. The team describes 2026 as a year that focuses on adoption, scale expansion and ecological growth, rather than just functional development.

The Arbitrum proposal is in line with this shift. The team wants to place SCRT closer to Ethereum users, DeFi protocol and infrastructure providers, rather than leaving it in a smaller ecosystem where liquidity continues to decline, while Secret Network continues to build around private and verifiable computing.

What should SCRT holders pay attention to

This migration plan does not mean that the original Cosms-based Secret Network chain will be automatically closed. If enough validators remain active, the chain can continue to run. However, SCRT Labs stated that official development and related support for Cosmos L1 will end on September 1, 2026.

For holders, the biggest problem is the token form. The proposal states that users do not need to send tokens anywhere before taking a snapshot. This is not a destruction event, deposit window, or manual pre-migration transfer. However, holders must ensure that their SCRT is in qualifying form before the snapshot date.

holders to note:

Before the snapshot date, check whether SCRT is held in native SCRT form or pledged SCRT form. If migration eligibility is important, avoid leaving SCRT in a liquidity pool or contract. sSCRT, cross-chain bridged SCRT, and other private token formats may need to be converted before the snapshot. IBC assets on the Secret chain (including ATOM, OSMO, and USDC) are not part of the SCRT migration plan. SCRT in the pledge is expected to be counted, so the pledger does not need to release the pledge just for the snapshot. The proposal still needs to be approved through a governance vote, so holders should pay attention to official updates before taking action. The exchange may support the new ERC-20 SCRT, but the proposal states that the exchange\'s ultimate actions will be controlled by these third parties themselves.

Summary

Secret Network\'s proposal to migrate to Arbitrum shows how blockchain projects are reassessing old infrastructure in the era of AI-assisted security research. The team positioned the migration as a security, liquidity and ecological decision rather than a simple token transfer.

If the governance process approves the plan, September 1, 2026 will become a key date for SCRT holders. Prior to this, the proposal itself had sent an important signal: Secret Network wants SCRT to enter a broader, Ethereum-aligned environment, while continuing to build around confidential AI and private computing.