The Terra blockchain is officially on hiatus
Facing the collapse of the UST and its LUNA token, the Terra blockchain been temporarily suspended to prevent any governance attack†
The Terra blockchain was officially discontinued at a block height of 7603700.https://t.co/squ5MZ5VDK
Terra validators have decided to stop the Terra chain to prevent governance attacks after severe $LUNA inflation and significantly lower attack costs.
— Terra (UST) 🌍 Powered by LUNA 🌕 (@terra_money) May 12, 2022
The decision was made by a majority of validators with the support of Terraform Labsto restart the blockchain once it is updated with a patch that temporarily suspended shutdown functions†
The LUNA price is currently dramatically low, a governance attack could endanger the entire blockchain†
That said, it remains to be seen what solutions will be taken in parallel with this new announcement. Do Kwonthe founder of Terra, hasn’t given any news since yesterday, when he announced via tweet that he was looking for solutions to rebalance the LUNA and the UST between them, both of which are now in a downward spiral.
At the time of writing these rules, the UST observes a price of $0.35 (instead of 1), and the LUNA prints a course for $0.01with a terrifying -100% across all timescales.
Note that the blockchain is notably put on hold following a Lido Protocol tweet yesterdaywho mentioned exactly this possibility of an attack:
” Currently, [NDLR : 15h32, 11 mai] Terra’s economic security was briefly estimated at about $180 million, with over $200 million worth of bETH on Terra. It is theoretically possible to shut down the network and freeze these assets in a comprehensive economic attack. †
Whatever, all eyes are now on UST and LUNAwhich were still in the top 10 cryptocurrencies by market cap a week ago.
[Mise à jour : 12/05 – 19h15]
Terra has published the patch in question on the GitHub development platform.
The announcement was accompanied by the following tweet:
“Delegations will be disabled as soon as block production resumes. The network should be operational once 2/3 of the votes are online. An update will be provided accordingly.”
👉 To dig deeper: why the UST stablecoin collapsed and what is the future of the Terra ecosystem?
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About the author : Maximilien Prue
Passionate about the world of decentralized finance and the novelties of Web 3.0, I write articles for Cryptoast to make the blockchain more accessible to everyone. Confident that cryptocurrencies will change the future very soon.
All articles by Maximilien Prué.