Key Highlights
- Secret Network proposed migrating native and staked SCRT to Arbitrum through a Sept. 1, 2026 snapshot, pending community approval.
- SCRT Labs will end official support for the Cosmos-based Secret Network on September 1, leaving future maintenance to validators.
- Only native and staked SCRT will qualify for migration, while sSCRT, bridged SCRT and IBC assets are excluded from the snapshot.
Secret Network has unveiled a proposal to migrate its native SCRT token from its Cosmos-based blockchain to Arbitrum, marking what could become the biggest transition in the project’s six-year history.
The proposal seeks to relocate SCRT into Ethereum’s ecosystem, with the team arguing that liquidity, infrastructure, and developer activity have steadily shifted away from Cosmos.
Under the proposal, all eligible native and staked SCRT balances will be migrated to a new ERC-20 version of the token through a one-time snapshot currently scheduled for September 1, 2026. The proposal will first require approval through community governance before the migration proceeds.
Alongside the proposed migration, SCRT Labs said it will conclude official support for the Cosmos-based Secret Network on September 1, regardless of how the community vote goes. While the blockchain itself could continue operating if validators keep enough staking power online, future development and maintenance would be left to the community.
“This is a proposal, not a decision,” the team wrote, emphasizing that the migration “belongs to the people who hold the token” and will only proceed with community approval.
Why leave Cosmos?
Secret Network said the proposal reflects how much the blockchain industry has changed since the project launched in 2020.
The team acknowledged that Cosmos played a key role in helping Secret pioneer privacy-preserving smart contracts, but argued the ecosystem has gradually lost momentum. According to SCRT Labs, liquidity has thinned, builders have moved elsewhere, and critical infrastructure such as wallets, exchanges and custody services has become far stronger across Ethereum-compatible networks.
The proposal argues that Arbitrum offers deeper liquidity, mature DeFi infrastructure, broader exchange support and a much larger developer ecosystem, making it a stronger long-term home for SCRT.
The proposal argues that Arbitrum offers deeper liquidity, mature DeFi infrastructure, broader exchange support and a much larger developer ecosystem, making it a stronger long-term home for SCRT.
“For SCRT to endure, it needs a new stable home. The Ethereum ecosystem is that home,” the proposal states.
Security concerns added urgency
Beyond ecosystem growth, SCRT Labs said security played an important role in its thinking. The proposal pointed to the recent Axelar-Secret IBC bridge incident, noting that the exploit did not affect Secret’s confidential computing technology or native SCRT itself. However, it said the incident exposed the risks of maintaining aging bridge infrastructure within a shrinking ecosystem.
SCRT Labs also argued that advances in AI-assisted code analysis are making older software easier to exploit, increasing the importance of operating in an ecosystem with active developers, auditors and security monitoring. “The security risk is the part we take most seriously,” the proposal said.
How the migration will work
If approved, a snapshot of eligible balances will be taken on September 1, 2026, with the exact block height to be announced closer to the date.
The snapshot will include:
- Native SCRT held in wallets
- Staked SCRT, including tokens currently unbonding
However, it will exclude:
- sSCRT and other private Secret tokens
- SCRT held in liquidity pools or smart contracts
- Bridged SCRT on other blockchains
- IBC assets such as ATOM, OSMO, USDC, WBTC and INJ
- Other SNIP-20 tokens
SCRT Labs urged users to convert unsupported balances back into native or staked SCRT before the snapshot. It also advised users to transfer IBC assets back to their original chains to avoid potential complications during the migration.
Importantly, the team stressed that users do not need to send their tokens anywhere before the snapshot. “This is not a burn, not a deposit window, and not something you have to act on before the snapshot,” the proposal said.
Claiming the new SCRT
Following the snapshot, SCRT Labs plans to launch a new ERC-20 SCRT token on Arbitrum along with staking and governance contracts.
Eligible holders will be able to claim their new tokens by submitting a Merkle proof tied to the snapshot through the Redeemer contract. According to the proposal, the claim portal will remain open indefinitely, allowing users to redeem their tokens without a deadline.
Tokenomics largely stay the same
Aside from the migration itself, the proposal introduces only limited economic changes.
SCRT will remain the governance token, while annual inflation would be reduced from 9% to 5%. Staking will continue, although its primary role will shift toward governance participation rather than securing the Cosmos-based blockchain through validator rewards.
SCRT Labs also said it plans to release Secret Network’s source code under a permissive open-source license after ending official support, allowing community members to continue maintaining the existing chain if they choose.
Focusing on confidential AI
Beyond the token migration, SCRT Labs said the move is designed to position Secret Network closer to emerging sectors such as confidential AI, privacy-preserving computation and verifiable off-chain computing.
The proposal argues that Arbitrum’s larger developer community and deeper ecosystem provide a stronger foundation for building those technologies than the project’s current Cosmos environment.
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