Privacy Public Chain Secret Network Announces Migration to Arbitrum Ecosystem, SCRT Converts to ERC-20
Secret Network, a privacy public chain, will migrate to Arbitrum, with SCRT tokens converting to ERC-20 tokens on Arbitrum, with a snapshot scheduled for September 1, 2026.
Native and staked SCRT will be migrated automatically, while other forms need to be converted in advance; after migration, SCRT will still serve as a governance token, and the team proposes to reduce the inflation rate from 9% to 5%.
After migration, SCRT Labs will stop maintenance and open-source the code, with proposals pending community voting.
Source: Public Information
ABAB AI Insight
Secret Network previously focused on privacy computing and developed within the Cosmos ecosystem. This migration to Arbitrum reflects a strategic adjustment path when Layer 1 faces insufficient liquidity and ecosystem attractiveness.
On the capital path, the migration simplifies cross-chain and ERC-20 compatibility, reduces inflation to attract long-term holding, and shifts resources from independent maintenance to co-building within the Arbitrum ecosystem, motivated by enhancing token liquidity and adoption.
Similar to multiple Cosmos chains migrating or bridging to mainstream L2s, Secret is currently in a contraction phase of transitioning from independent operation to integration into mainstream ecosystems.
Essentially, this is a restructuring of the industry chain: migration and open-sourcing accelerate technological diffusion, mechanism-wise stemming from Arbitrum's low fees and liquidity advantages, prompting a shift in pricing power from native L1 to integrated ecosystem platforms, and optimizing governance and inflation structures to adapt to competition.
ABAB News · Cognitive Law
Migration is rebirth; liquidity surpasses independent privacy narratives.
Reducing inflation locks in long-term holding; ecosystem integration reshapes token value structure.
Open-sourcing code accelerates diffusion; flexibility in L1 competition defines survival.