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”.
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
“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and increasing the emission of cryptocurrency, which supposedly will allow the necessary number of stablecoins to be withdrawn from circulation faster.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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