Validators stopped the failed one Blockchain with a block height of 7603700.
The central theses
- Terra validators have halted the blockchain in response to the ongoing crisis.
- As UST loses its peg to the dollar, LUNA has entered a death spiral. It broke below a dime today.
- Terra says the network will restart when 2/3 of the voting rights come online. After this week, however, the future of the project is in the stars.
Development follows LUNA’s death spiral and crash under a dime.
Terra Blockchain paused
The Terra blockchain is at a standstill.
Terraform Labs, the development company behind the ill-fated network, released an update late Thursday confirming that the blockchain has stopped at a block height of 7603700. The post explained that the network was halted to mitigate the risk of governance attacks.
One tweet read:
“Terra validators have decided to stop the Terra chain to prevent governance attacks after a severe $LUNAinflation and significantly reduced attack costs.”
Terraform Labs later shared a patch to disable further delegation before validators restart the network. It added that the network would be restarted if 2/3 of the voting rights came online.
LUNA/USDT (Source: TradingView)The update comes during the USTstablecoin of Terra continues its fight to maintain its peg to the dollar. The algorithmic stablecoin fell below its intended price for the first time on Saturday and has not returned to its peg this week. When it was running, Terra incorporated a design mechanism that used LUNA to stabilize UST’s price. Arbitrageurs could burn 1 UST to mint $1 worth of LUNA if UST price falls below the peg, or burn $1 worth of LUNA if UST price trades above $1. However, UST saw increased selling pressure this week amid unfavorable market conditions. As a result, LUNA also crashed and went into a death spiral as UST holders rushed to vacate their positions. As an increasing number of UST holders began to mint more LUNA, the supply increased dramatically, breaking over 25 billion tokens today. LUNA fell below a dime this afternoon. Just a week ago it was trading closer to $80.
With LUNA’s price now effectively approaching zero, the cost of attacking the network has dropped dramatically. the market capitalization for blockchain is now just over $400 million. When LUNA was worth $80, the network was worth about $30 billion.
This week’s obliteration has been described as an unprecedented event unparalleled in crypto history. Although many algorithmic stablecoin projects have failed in the past, including the Basis Cash project that Do Kwon, CEO of Terraform Labs, is said to have helped create, none have had as dramatic a rise and fall as Terra. Once one of the world’s largest Layer 1 blockchains alongside , , and , Terra has become one of crypto’s most spectacular failures in a matter of weeks.
To update: Today at around 18:00 UTC, the Terra blockchain had resumed block production.
Source: Crypto News Deutsch