Image Credit: Arbitrum
Secret Network is proposing to move its SCRT token from its Cosmos-based chain to Arbitrum, citing weaker liquidity, older infrastructure and security risks tied to AI-assisted exploit discovery.
The proposal is not final. It must pass a community governance vote before the migration can proceed.
Sept. 1 Snapshot Would Include Staked SCRT
The plan calls for a one-time snapshot of SCRT balances on September 1, 2026. A new ERC-20 SCRT token would then be deployed on Arbitrum.
Holders of native SCRT and staked SCRT would be able to claim the new token through a snapshot-based redeemer contract.
Staked SCRT would be included in the snapshot, including tokens in the unbonding process. Users would not need to unstake before the snapshot to be counted.
Contract-Held SCRT May Not be Claimable
The proposal warns users to move SCRT out of contracts before the snapshot. Balances held as sSCRT, bridged SCRT, liquidity pool positions or other contract-based forms would not be included. SCRT held in those forms at snapshot time may not be claimable later.
Users are also being told to move IBC assets such as ATOM, OSMO and USDC back to their native chains before the migration date. Secret said the snapshot must stay simple and verifiable, which is why private balances, bridged tokens and contract-held assets are excluded.
Proposal Cites Bridge Incident and AI Exploit Risks
Secret Network said the recent Axelar-Secret IBC bridge incident showed the risk of older integration paths and bridge assumptions.
The exploit did not affect native SCRT, Secret’s privacy protocol or its confidential compute model. The proposal said it exposed weaknesses around legacy code and cross-chain integrations.
Secret said AI tools are making it easier to identify older vulnerabilities and turn overlooked edge cases into working exploits. It described Arbitrum as a stronger long-term home because of its Ethereum alignment, deeper DeFi markets and broader infrastructure base.
SCRT Labs Support Ends Sept. 1
SCRT Labs said it will end official support for the Cosmos-based Secret L1 on September 1, regardless of the governance vote.
The proposal would not automatically shut down the old chain. It could keep producing blocks if enough validators continue operating, but official development and validator rewards from SCRT Labs would end.
The proposal would also reduce inflation to 5% from 9% after migration. SCRT would remain the governance token, with staking used for governance participation and inflation rewards.
The next step is the vote. If holders approve the plan, SCRT moves to Arbitrum. If they reject it, the migration does not proceed, but the current chain would still face the loss of SCRT Labs suppor
