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Terra Blockchain Validators Shut Down Network Amid LUNA and UST Crash

The Terra project team reported that the validators decided to stop the blockchain at block height #7603700. The move was explained by the need to protect the network from potential “governance attacks”.

“Validators have decided to stop the Terra chain to prevent attacks on governance following massive LUNA inflation and a significant reduction in attack costs,” the developers wrote.

At the time of writing, LUNA is trading just above $0.01, according to CoinGecko. Theoretically, due to the too low price of the native Terra token, an attacker can buy a large amount of cryptocurrency and use it to attack the network.

Earlier, Terraform Labs introduced a number of measures aimed at restoring the UST algorithmic stablecoin and the LUNA cryptocurrency. One of the main ones is the activation of offer #1164, which was previously mentioned by the head of Terraform Labs, Do Kwon.

The initiative involves expanding the LUNA base pool and increasing the emission of cryptocurrency, which supposedly will allow the necessary number of stablecoins to be withdrawn from circulation faster. However, the move, de facto, devalued the native token – its market supply exceeded 40 billion coins, according to SmartStake.

Terraform Labs has also allocated 240 million LUNAs to protect against potential attacks on network management. However, it seems that with such a dramatic depreciation, the validators felt that these funds were not enough.

Recall that CoinDesk journalists learned that Do Kwon was one of the anonymous co-founders of the crashed algorithmic stablecoin Basis Cash.

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My profession is a journalist, but my hobby for 8 years has been studying Forex investing and trading. During this time, I managed to gain extensive experience in investing and trading cryptocurrencies and double my capital in the Forex market. To be the author of this magazine, the site owners invited me to participate in one of the 2020 trading webinars, and I will try to reveal the most relevant crypto market news for you.

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