12 May 2022 16:40, UTC.
Reading time: ~2 m
The Terra project team reported that validators decided to stop blockchain operation at the height of block #7603700. The step was explained by the need to protect the network from potential “governance attacks”.
The Terra blockchain was officially halted at a block height of 7603700.https://t.co/squ5MZ5VDK
Terra validators have decided to halt the Terra chain to prevent governance attacks following severe $LUNA inflation and a significantly reduced cost of attack.
– Terra (UST) 🌍 Powered by LUNA 🌕 (@terra_money) May 12, 2022
“Validators decided to stop the Terra chain to prevent management attacks after a strong inflation of LUNA and a significant reduction in the cost of attack,” the developers wrote.
As of this writing, LUNA is trading just above $0.01, according to CoinGecko. In theory, because the price of Terra’s native token is too low, an attacker could buy up a large amount of cryptocurrency and use it to attack the network.
Earlier, Terraform Labs unveiled a number of measures aimed at recovering the UST algorithmic stackcoin and the LUNA cryptocurrency. One of the main ones is the activation of proposal #1164, which Terraform Labs head Do Kwon previously revealed.
The initiative involves expanding LUNA’s underlying pool and increasing the cryptocurrency’s issuance, which would supposedly allow the necessary number of stabelcoins to be withdrawn from circulation more quickly. However, the move, de facto, devalued the native token – its market supply exceeded 40 billion coins, according to SmartStake.
Terraform Labs has also allocated 240 million LUNA to protect against potential attacks on network management. Apparently, however, with such a dramatic drop in the rate, validators felt that these funds were not enough.
As a reminder, CoinDesk reporters learned that Do Kwon was one of the anonymous co-founders of the failed Basis Cash algorithmic stackcoin.
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