Secret Network Eyes Arbitrum Move After Bridge Exploit Shakes Cosmos

• Secret Network plans SCRT migration to Arbitrum through a September 2026 snapshot process.
• The move follows bridge security concerns and aims to access deeper Ethereum liquidity.
• SCRT holders must prepare eligible tokens before migration approval and implementation.

Secret Network is proposing a major transition from Cosmos to Arbitrum after security concerns, declining liquidity, and ecosystem challenges affected its long-term outlook.

The privacy-focused blockchain plans to migrate the SCRT token to an Ethereum-based Layer-2 network through a community-approved process. The move follows a bridge exploit that raised concerns about older infrastructure and security risks across shrinking ecosystems.

Secret Network Targets Arbitrum After Security Concerns

Secret Network said the proposed migration would create a new ERC-20 SCRT token on Arbitrum through a snapshot scheduled for September 1, 2026. However, the transition remains subject to community governance approval before implementation.

The team explained that native and staked SCRT balances would qualify for migration during the snapshot process. Meanwhile, contract-held tokens, sSCRT, bridged SCRT, and certain IBC assets would not be included.

Additionally, holders must move eligible assets into supported formats before the snapshot date. The process aims to simplify migration while reducing potential risks linked to complex token representations.

Secret Network cited the recent Axelar-Secret IBC bridge exploit as a key factor behind the proposal. The incident reportedly affected approximately $4.7 million in bridged assets, although the team stated that native SCRT and its privacy technology remained unaffected.

Moreover, Secret Network warned that aging codebases could face increased risks as artificial intelligence tools make vulnerability discovery easier. The team argued that larger ecosystems provide stronger security resources through broader developer activity and infrastructure support.

SCRT Migration Seeks Stronger Ethereum Ecosystem Access

Secret Network said Cosmos provided important support during its early development, particularly through appchain infrastructure and IBC connectivity. However, the project believes current market conditions require a more active ecosystem.

The team highlighted Arbitrum’s liquidity, developer tools, wallet support, and established DeFi environment as reasons for selecting the Ethereum Layer-2 network. The migration would allow SCRT to operate closer to broader decentralized applications and financial services.

Furthermore, SCRT Labs plans to end official support for the Cosmos-based Secret Network layer on September 1, 2026. The project said the existing chain could continue operating through independent validators if sufficient network participation remains.

The proposal also introduces changes to SCRT economics, including reducing inflation from 9% to 5%. Staking would continue, but its role would shift toward governance participation rather than traditional network security incentives.

Additionally, Secret Network plans to release its source code under a permissive open-source license. This approach would allow external developers and validators to continue contributing after official support ends.

The proposed move represents a strategic shift toward confidential computing and privacy-focused applications. However, the final decision depends on SCRT holders, who will determine whether the Arbitrum migration proceeds.

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