The Terra blockchain officially on hiatus
Faced with 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 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
The decision was made by a majority of validators with the support of Terraform Labsin order to restart the blockchain once updated with a patch that will put temporarily paused staking functions.
The LUNA price being currently dramatically low, a governance attack could effectively put the entire blockchain at risk.
That said, it remains to be seen what solutions will be undertaken in parallel with this new announcement. Do Kwonthe founder of Terra, has not given any news since yesterday, when he announced via a tweet that he was looking for solutions to rebalance the LUNA and the UST between them, which are now both in a downward spiral.
At the time of writing these lines, the UST observes a price of 0.35 dollars (instead of 1), and the LUNA prints a course at 0.01 dollarsposting a frightening -100% across all timescales.
Note that the blockchain was notably put on hold following a Lido Protocol tweet from yesterdaywhich mentioned precisely this possibility of attack:
” Currently, [NDLR : 15h32, 11 mai] Terra’s economic security was briefly valued at around $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 an elaborate economic attack. »
Whatever, all eyes are now on UST and LUNAboth of which were still in the top 10 cryptocurrencies by market capitalization just 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 as soon as 2/3 of the votes are online. An update will be provided accordingly. »
👉 To dig deeper: Why did the UST stablecoin collapse and what is the future of the Terra ecosystem?
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