Terra blockchain Its validators have decided to officially suspend network activity on Thursday to ward off potential attacks following the severe devaluation of the ecosystem’s main token, LUNA.
Blockchain validators represent people who maintain the integrity of the blockchain by continuously adding computing power to the connection from the first block to the last. There is a shortened version of the blockchain for this purpose, which is usually much smaller than the full chain that contains every transaction.
Terraform Labs‘s official Twitter account also confirmed that the blockchain network was halted at a block height of 7,607,789. This means the validators have stopped the network a second time in less than 24 hours. The first stop was made at a block height of 7,603,700.
What’s Happening on the Terra Blockchain?
- The shutdown of the Terra blockchain came after the price of the governance token LUNA and the algorithmic stablecoin TerraUSD (UST9) fell sharply.
- The stablecoin, designed to maintain algorithmic parity with the United States dollar, lost its pegged value earlier this week and is currently trading at $0.18 at the time of this writing.
- The validators stated that they made this decision because the LUNA price dropped more than 99%. They also underlined that Terraform Labs is no longer confident that it can prevent governance attacks.
- Earlier this week, Terraform Labs co-founder Do Kwon shared details about a recovery plan that will help save the UST stablecoin from further devaluation.
- Terra’s official Twitter account shared more details on those plans, laying out a strategy to burn $1.4 billion of UST and buy 240 million shares of LUNA on Thursday.
- However, pressure from the market resulted in these recovery plans quickly failing. LUNA is currently trading with very low decimals.
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