Terraform Labs has said the Terra blockchain has been halted
According to a statement by Terraform Labs, the Terra blockchain has been paused to protect against a possible attack.
“Terra validators have decided to halt the Terra chain to prevent governance attacks following severe LUNA inflation and a significantly reduced cost of attack,” said the official Terra account on Twitter.
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 Terra blockchain has been halted to prevent governance attacks
This comes after a shared, purported screenshot from the official Terra Discord, indicating the thread will be paused and restarted with staking disabled. The idea of disabling staking would be to prevent an attack. It is not clear if this is the official plan or not.
After the UST price losing its peg caused havoc for the related token LUNA (which was supposed to help UST keep the peg). Cash withdrawals from UST holders caused a massive increase in the supply of Luna, which also lowered its price. Luna’s supply has increased from 1.5 billion to 32.3 billion today, while its price has dropped from $1 to $0.016.
This comes a day after liquid staking protocol Lido Finance warned of a possible attack on the network. It notes that Terra’s economic security has decreased, leaving it vulnerable.
Please exercise caution and be aware that you may want to withdraw these assets until economic security recovers.
— Lido (@LidoFinance) May 11, 2022
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