Terra blockchain validators to restart network after LUNA and UST collapse

The Terra project team said validators decided to halt the blockchain at block height #7603700. The move was described as necessary to safeguard 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

“The validators decided to halt the Terra chain to prevent governance attacks following severe LUNA inflation and a significantly reduced cost of attack,” the developers wrote.

As of this writing, LUNA trades slightly above $0.01, according to CoinGecko. In theory, because of the native token’s very low price, an attacker could buy a large amount of the cryptocurrency and use it to attack the network.

Earlier, Terraform Labs presented a number of measures aimed at restoring the algorithmic stablecoin UST and the LUNA cryptocurrency. One of the main steps is the activation of proposal #1164, which earlier explained Terraform Labs chief Do Kwon.

The initiative envisages expanding the base pool of LUNA and increasing the token supply, which allegedly would enable a faster removal of the necessary amount of stablecoins from circulation. But the move de facto devalued the native token — its circulating supply has topped 40 billion coins, according to SmartStake.

Terraform Labs also earmarked 240 million LUNA to guard against potential governance attacks. However, given the dramatic price drop, validators apparently considered these funds insufficient.

Earlier, CoinDesk reporters learned that Do Kwon was one of the anonymous co-founders the failed algorithmic stablecoin Basis Cash.

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