Validators for that Terra blockchain have made the decision to formally halt network activity on Thursday inside a move made to prevent governance attacks following a severe devaluation from the network’s LUNA token.
Terraform Labs’ official Twitter handle confirmed the blockchain network was stopped in a block height of seven,603,700. The move follows a number of dramatic occasions that triggered an unparalleled loss of the cost of LUNA and it is connected TerraUSD (UST) stablecoin. The stablecoin, which is built to maintain algorithmic parity using the U . s . States dollar, lost its peg the 2009 week before plunging below $.30.
The Terra blockchain was formally stopped in a block height of 7603700.https://t.co/squ5MZ5VDK
Terra validators have made the decision to prevent the Terra chain to avoid governance attacks following severe $LUNA inflation along with a considerably lower cost of attack.
— Terra (UST) Operated by LUNA (@terra_money) May 12, 2022
With LUNA’s cost collapsing greater than 99%, Terraform Labs is not confident that it may prevent governance attacks. Quite simply, the cost decline “significantly reduced [the] price of attack,” the ecosystem operator tweeted Thursday.
As Cointelegraph reported, LUNA/UST contracts are slated for delisting on Binance when the buying and selling pair falls below .005 USDT, that has already happened. The delisting required put on Thursday at 3:30 pm UTC.
Related: Why did Terra LUNA and UST crash? Find available Report
The 2009 week, Terraform Labs co-founder Do Kwon shared information regarding a recovery plan that will assist saving the UST peg from further devaluation. Terra’s official Twitter handle further elaborated on individuals intentions of Thursday by lounging out an approach to burn $1.4 billion UST and stake 240 million LUNA. However, the facts from the save plan have unsuccessful to discourage market sell pressure.
1/ The current peg pressure on $UST from the current supply overhang is rendering severe dilution of $LUNA.
The main obstacle is expelling unhealthy debt from UST circulation in a clip quick enough for that system to revive the healthiness of on-chain spreads.
— Terra (UST) Operated by LUNA (@terra_money) May 12, 2022
Prior to the occasions of the week unfolded, Terra LUNA would be a top ten cryptocurrency project by market capital, and it is UST asset was the 3rd-largest stablecoin behind only Tether (USDT) and USD Gold coin (USDC).
