Terra Blockchain Temporarily Stops Block Production, Aims to Restart Network With a Patch

Terra

At 12:14 p.m. (ET), the Twitter account operated by the Terra team announced that the Terra blockchain network had been halted. According to the Terra developers’ tweet, Terra validators needed to apply a patch to further disable delegations.

Terra Blockchain Shuts Down to Prevent Governance Attacks, Team Announces Imminent Restart

As of this writing, the Terra blockchain has halted block production since mid-afternoon Eastern Standard. The teams Twitter account addressed the audience in saying: “The Terra blockchain has been officially terminated at a block height of 7603700. Terra validators have decided to terminate the Terra chain to prevent governance attacks following high $LUNA inflation and greatly reduced attack cost .”

On May 12, 2022, Terra’s native token LUNA dropped to an all-time low of $0.00825774 per unit. The once-stable coin terrausd (UST) has been quite volatile and has seen a 24-hour price range between $0.842598 to $0.315279 per coin. UST which was once a top ten coin, is now ranked 25, while LUNA was also a top ten coin and is now ranked 112 among 13,419 cryptocurrencies.

Following the update, the Terra team explained that a patch is in the works to restart the network. “The validators are applying a patch to disable other delegations, and they will coordinate to restart the network in a few minutes,” the team said. tweeted. Nine hours ago, the Terra team explained that the system was feeling intense pressure.

“The prevailing peg pressure on UST from its current supply overhang is rendering severe dilution of LUNA,” the team said. “The primary obstacle is expelling the bad debt from UST circulation at a clip fast enough for the system to restore the health of on-chain spreads. To expedite this goal, several measures are being taken. First, the current Prop 1164 will expand the base pool size and accelerate the burn rate of UST – helping deflate on-chain spreads.”

The Terra Team added:

TFL is also launching three other emergency actions: 1. Proposal to burn the remaining UST in the community pool. 2. TFL will burn the remaining 371 million UST cross chains on Ethereum. 3. TFL just staked 240 million LUNA to defend against network governance attacks.

Following the patch update, the team explained that the patch release codebase was available and further said: “Delegations will be disabled once block production resumes. The network should go live once 2/3 of the voting power comes online. An update will be provided accordingly.”

The Terra channel has been in the spotlight for a few weeks now, ever since the project team started stacking large amounts of bitcoin (BTC) to defend the UST peg. While the media was once positive, like the backers of Terraform Labs, stories about the Terra ecosystem today have been nothing short of negative. At the time of writing, the Terra blockchain and its validators have yet to relaunch the chain in block production.

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