Terraform Labs, the company behind the UST and Terra (LUNA) cryptocurrencies, stopped the Terra blockchain on Thursday following the collapse of the Terra ecosystem this week, causing the collapse of its TerraUSD (UST) stablecoin token, taking the rest of the cryptocurrency market with it.
The stop means that no new blocks are generated on the blockchain network after it is completed. block height 7603700and owners cannot move their Terra assets until the blockchain is unfrozen.
“Terra’s validators have decided to shut down the Terra network to prevent attacks on governance following severe $LUNA inflation and a significant reduction in attack costs,” the company tweeted.
This step was taken after the release of the not very stable TerraUSD (UST) coin. off the $1 level it should have been at and fell over 99% earlier this week.
The company also said that delegation will be disabled once block production resumes, and the network should be up and running once two-thirds of the votes are online.
Do Kwon, founder of both cryptocurrencies, unveiled the plan yesterday in the hope of rectifying the situation. “First of all, the only way forward will be to gobble up the stablecoin supply that wants to exit before $UST can reg,” Kwon wrote in his report. tweet thread. – It’s impossible to bypass it.
Kwon planned to support Terra Community Offer this would quadruple the amount of LUNA that could be minted so that holders could “gobble up UST faster” or sell because only a certain amount of UST could be sold daily.
But with an increase in minting power, the price of LUNA may fall even more; indeed, it has dropped significantly since yesterday.
Currently, about 352,345,072 votes (based on the number of LUNA tokens, not per user) have been cast in favor of the proposal and zero votes against it. The number of votes increased by 270% from 95,200,000 votes on Wednesday. It is unclear if Kwon will continue to support the proposal after Terra stopped the blockchain today.
“For the uninitiated, when cryptocurrencies crash and become incredibly cheap and more and more minted, anyone can just take control of the network,” said Zach Gusman, a former Yahoo Finance crypto reporter. tweet. “Obviously that wouldn’t be good, as a bad actor could do whatever they want with it. Stopping is the last resort.”
Over the past few days, LUNA has fallen over 99% to $0.01479 and UST has fallen 62.7% to $0.37 peg to $1, according to CoinMarketCap.
Credit: techcrunch.com /