According to the latest development, Terra validators have officially halted the failing blockchain.
The official announcement released by Terraform Labs, the development company behind the ill-fated network, says that the blockchain was halted at a block height of 7603700. The development follows LUNA’s death spiral and crashes below one cent.
According to the report, the validators decided to pause the blockchain to mitigate the risk of governance attacks.
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Terra (UST) tweeted, “The Terra blockchain was officially halted at a block height of 7603700. 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 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
After the announcement, Terraform Labs shared a patch to disable further delegations ahead of validators restarting the network. It added that the network would be restarted when 2/3 of the voting power comes online.
“The patch release is out: 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 patch release is out:https://t.co/BZ8t86cuwA
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. https://t.co/vffpjw7uom
— Terra (UST) 🌍 Powered by LUNA 🌕 (@terra_money) May 12, 2022
Terra Founder Do Kwon Shares Plan to Rescue UST Stablecoin
On the 11th of May, CEO of Terraform Labs, Do Kwon, announced his rescue for the Terra community following the massive crash of his coins Terra (LUNA) and TerraUSD (UST).
In a series of tweets today, Kwon said his team will increase basepool from 50M to 100M SDR and decrease PoolRecoveryBlock from 36 to 18. He expects this to increase minting capacity from $293 million to around $1200 million ($1.2 billion). This will enable the team to mint four times more UST than usual.
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Do Kwon noted:
“The price stabilization mechanism is absorbing UST supply (over 10% of total supply), but the cost of absorbing so much stablecoins at the same time has stretched out the on-chain swap spread to 40%, and Luna price has diminished dramatically absorbing the arbs.
“Before anything else, the only path forward will be to absorb the stablecoin supply that wants to exit before $UST can start to repeg. There is no way around it. We propose several remedial measures to aid the peg mechanism to absorb supply:
“First, we endorse the community proposal 1164 to Increase basepool from 50M to 100M SDR *) Decrease PoolRecoveryBlock from 36 to 18. This will increase minting capacity from $293M to ~$1200M. This should allow the system to absorb the UST more quickly.
“With the current on-chain spread, peg pressure, and UST burn rate, the supply overhang of UST (i.e., bad debt) should continue to decrease until parity is reached and spreads begin healing.
“Naturally, this is at a high cost to UST and LUNA holders, but we will continue to explore various options to bring in more exogenous capital to the ecosystem & reduce supply overhang on UST.”
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