The Validators decided to terminate chain activities on Thursday, when the LUNA token fell over 99%, anticipating governance assaults.
In order to prevent governance assaults following the severe devaluation of the network’s LUNA token, Validators for the Terra blockchain have decided to formally shut down network activity on Thursday.
The official Twitter account of Terraform Labs announced that the blockchain network was stopped at block height 7,603,700. The development follows a series of surprising events that resulted in the price of LUNA and its linked UST stablecoin plummeting by over 90 percent.
The stablecoin, which was supposed to maintain mathematical parity with the US dollar, lost its peg last week before plummeting below $0.30.
Terraform Labs’ confidence that it can prevent governance attacks has evaporated, according to its founder. In other words, the price decline “significantly reduced” the attack’s cost, as the ecosystem operator put it Thursday.
However, the network’s suspension was short-lived, with Terra later stating that it would restart the network after validators installed a fix to remove further delegations. “Once 2/3 of the voting power comes online, the network should launch,” they added.
Following a decline in Binance’s LUNA/USDT trading pair below 0.005 USDT on Thursday, the contracts were terminated. On Wednesday, Huobi delisted LUNA coins as part of its rotating schedule.
This week, Do Kwon, the co-founder of Terraform Labs, revealed details about a recovery strategy to assist prevent the UST peg from declining further. On Thursday, Terra’s official Twitter account outlined the company’s future plans in further detail by outlining a plan to burn $1.4 billion UST and put up 240 million LUNA.
However, the rescue strategy’s specifics have yet to deter market selling pressure.
Terra LUNA was a top 10 cryptocurrency project by market capitalization before the week’s events, and its UST asset was the third-largest stablecoin behind only Tether (USDT) and USD Coin (USDC).
