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Terra Blockchain Halted an Hour to Prevent Governance Attacks
Summary: The Terra blockchain has been halted by developers at a block height of 7,603,700 in order to stop all transactions on the network, according to a Twitter announcement from Terra. “The Terra blockchain was officially halted at a block height of 7603700. https://lcd.terra.dev/blocks/latest. Terra validators have decided to halt the Terra chain to prevent governance ...
The Terra blockchain has been halted by developers at a block height of 7,603,700 in order to stop all transactions on the network, according to a Twitter announcement from Terra.
“The Terra blockchain was officially halted at a block height of 7603700. https://lcd.terra.dev/blocks/latest. Terra validators have decided to halt the Terra chain to prevent governance attacks following severe $LUNA inflation and a significantly reduced cost of attack,” the tweet read.
20 minutes after that initial tweet, Terra provided a follow-up tweet saying, “Validators are applying a patch to disable further delegations, and they will coordinate to restart the network in a few minutes.”
About 40 minutes after that, the official Twitter account for Terra came out with their last announcement regarding the stoppage at the time of writing, although more updates are expected to be released.
“ The patch release is out: https://github.com/terra-money/core/releases/tag/v0.5.19….
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 tweet read.
The move was made in order to prevent governance attacks following severe LUNA inflation. The circulating supply of the token has expanded massively to 3.45 billion tokens according to Bitpush Terminal data. With such massive inflation the cost of potential attacks has gone down astronomically. Now that the governance token is extremely cheap, bad actors can come in and potentially take over the network.
LUNA is currently being traded at $0.0212, putting the once high-value token at a 99.06% decrease in the last 24 hours, according to Bitpush Terminal data.
Furthermore, TerraUSD (UST), a former prominent stablecoin in the market that ranked 10th in crypto by market cap is currently valued at $0.3389, which is far less than its once $1 peg.
With this collapse it is clear that the Feds will certainly call for more regulation on crypto, as this has significantly affected the lives of many members in the Terra community. In fact, Treasury Secretary Janice Yellen mentioned UST as she called for more legislation surrounding stablecoins when speaking at a May 10 Senate banking hearing.
Author: Tyler Irvin
Tags: Terra,UST
Link: Terra Blockchain Halted an Hour to Prevent Governance Attacks [Copy]
