Key Points
• Secret Network has proposed migrating from the Cosmos ecosystem to Ethereum layer-2 Arbitrum, citing growing security concerns and declining ecosystem activity.
• The development team warned that advances in artificial intelligence are making it easier to discover and exploit vulnerabilities in older blockchain code.
• The proposal follows a recent bridge exploit that resulted in approximately $4.7 million in losses, although Secret Network’s native blockchain remained unaffected.
• The migration would require community approval through governance and would issue a new ERC-20 version of SCRT on Arbitrum.
Privacy-focused blockchain Secret Network has proposed leaving the Cosmos ecosystem in favor of Ethereum layer-2 network Arbitrum, arguing that evolving security threats and changing developer activity have altered the blockchain landscape.
According to the development team, Cosmos offered strong opportunities when Secret Network launched in 2020, but the ecosystem has since experienced declining liquidity, fewer active developers and weaker infrastructure support.
The proposed move is intended to position Secret Network within a larger and more active blockchain ecosystem while strengthening its long-term sustainability.
AI Raises New Security Concerns
The project identified artificial intelligence as one of the primary reasons behind the proposed migration.
According to the team, increasingly advanced AI systems are making it significantly easier to analyze legacy smart contract code, identify vulnerabilities and develop potential exploits that previously required substantial manual effort.
Developers warned that aging codebases across blockchain ecosystems are becoming progressively more vulnerable as AI-powered security analysis continues to improve.
The concerns were reinforced by a recent exploit involving the Axelar-Secret Inter-Blockchain Communication (IBC) bridge, which resulted in approximately $4.7 million in losses. The incident affected bridged assets but did not compromise Secret Network’s native blockchain or SCRT token.
Arbitrum Offers Larger Ecosystem
Secret Network believes Arbitrum provides stronger long-term infrastructure due to its deeper liquidity, broader developer community and wider integration across wallets, exchanges and decentralized applications.
The team noted that many projects originally built within Cosmos have gradually migrated to Ethereum-based ecosystems, reducing the overall network effects that previously benefited Cosmos.
If approved, Secret Network plans to take a one-time snapshot of SCRT balances on Sept. 1, which would be used to distribute a new ERC-20 version of SCRT on Arbitrum.
The migration remains subject to approval through community governance.
Cosmos Continues to Lose Projects
Secret Network joins a growing list of blockchain projects that have shifted away from Cosmos.
Several networks have recently announced migrations toward Ethereum-compatible infrastructure as developers seek larger user bases, stronger liquidity and broader institutional adoption.
At the same time, decentralized finance activity within Cosmos has declined substantially from its previous market cycle highs.
Secret Network itself currently holds only a small share of total value locked within the ecosystem, reflecting broader challenges facing several Cosmos-based projects.
Market Reacts to Proposal
Investors responded cautiously to the migration announcement.
SCRT declined sharply following the proposal, extending its long-term decline from previous market cycle highs as traders evaluated both the risks and potential benefits of relocating to Ethereum’s ecosystem.
While the proposal has generated debate within the community, supporters argue that access to Ethereum’s larger infrastructure could improve long-term adoption opportunities if the migration proceeds successfully.
Outlook
Secret Network’s proposed migration highlights how artificial intelligence, evolving cybersecurity risks and shifting developer ecosystems are reshaping blockchain infrastructure decisions. As AI-assisted code analysis becomes increasingly sophisticated, blockchain projects may place greater emphasis on active development, ecosystem strength and modern security architecture when evaluating their long-term platforms.
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