Terra Team’s Twitter account posted at 12:14 PM (ET) that Terra Blockchain Network had been stopped. According to the Terra developers’ tweet, Terra validators needed to apply a patch to further disable delegations.
Terra Blockchain Team Announces an Endurance Measure to Avoid Governance Attacks
As of this writing, Terra has been unable to produce blocks since mid-afternoon Eastern Standard. The team’s Twitter accountAddressed the public by saying: “The Terra blockchain was officially halted at a block height of 7603700. Terra validators have decided to halt the Terra chain to prevent governance attacks following severe $LUNA inflation and a significantly reduced cost of attack.”
On May 12, 2022, Terra’s native token LUNA dropped to an all-time low of $0.00825774 per unit. The previously stable coin Terrausd (UST), has experienced volatility and its 24 hour price has fluctuated between $0.842598 and $0.315279. UST, which used to be ranked number ten in the world, has been ranked 25. LUNA is now ranked 112 out of 13,419 cryptocurrencies.
The Terra team informed the Terra community that a patch is in development to restart the network after the update. “Validators are applying a patch to disable further delegations, and they will coordinate to restart the network in a few minutes,” the team tweeted. The Terra team stated that nine hours earlier, they were feeling extreme pressure.
“The prevailing peg pressure on UST from its current supply overhang is rendering severe dilution of LUNA,” the team said. “The primary obstacle is expelling the bad debt from UST circulation at a clip fast enough for the system to restore the health of on-chain spreads. Several measures have been taken in order to accelerate this process. First, the current Prop 1164 will expand the base pool size and accelerate the burn rate of UST – helping deflate on-chain spreads.”
Terra Team added:
TFL also initiated three additional emergency actions. The community pool’s remaining UST could be burned. 2. TFL will torch the 371 million UST remaining cross-chain Ethereum on Ethereum. 3. TFL recently staked 240million LUNA to protect against network governance attack.
Following the patch update, the team explained that the patch release codebase was available and further said: “Delegations will be disabled once block production resumes. When 2/3 of the voting votes have been received, the network can be made live. An update will be provided accordingly.”
The Terra chain has been in the limelight for a few weeks now, since the project’s team started stacking large quantities of bitcoin (BTC) to defend the UST peg. While the media was once positive, similar to Terraform Labs’ backers, the stories concerning the Terra ecosystem today have been nothing short of negative. The Terra blockchain, and its validateators, have not yet launched the chain into block production.
How do you feel about Terra’s block production stopping chain? What do you think about the team’s next set of plans? Is Terra finished or does the blockchain project have a future?
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