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May 12, 2022
by Kay Adeoti
Terra Blockchain Halted To Prevent Governance Attacks
Following considerable inflation of its token, LUNA, and a reduction in the cost of assault, the Terra blockchain has been halted in order to defend against the possibility of a governance attack, as stated in a tweet from Terraform Labs, the company that is responsible for the Terra blockchain. This arises as a result of Terra's stablecoin (UST) losing its peg to the US dollar, which resulted in the price of LUNA plummeting nearly 100% from its previous high of $97 to about 2 cents in less than 48 hours.
A few minutes later, Terra sent a further tweet in which it said that validators are now working to restart the network within a few minutes by implementing a patch to disable further delegations. Following the completion of the patch, according to the message on Twitter, delegations will be terminated, and block production will then restart. In addition to this, an update to the blockchain will be released.
Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Kay is a content specialist who has a particular interest in the finance and cryptocurrency industries, among others. He is a frequent contributor to a number of finance and cryptocurrency-related websites, where he offers readers with informative and educational articles on the cryptocurrency and financial markets. Aside from that, he is an avid supporter of blockchain technology.