As the LUNA value moved towards zero, validation had to stop the blockchain.
Terra validators moved to halt blockchain on Thursday as they sought to prevent possible governance attacks.
Per the platform, the network was “officially halted at a block height of 7603700” with validatoes electing to take the step “following severe $LUNA inflation and a significantly reduced cost of attack.”
“The Terra blockchain has resumed block production. Now that the code merge is complete, delegations are no longer allowed. Validators, please check the Discord announcements for the latest patch notes,” Terraform Labs tweeted not long after the halt.
Block production has been resumed by Terra Blockchain.
Now that the code merge has made the chain live, delegations are no longer allowed.
Validators, please see the Discord announcements to find the latest patch notes. https://t.co/CGQgfMDWQe
— Terra (UST) 🌍 Powered by LUNA 🌕 (@terra_money) May 12, 2022
As it was, Terra’s depreciation had made it possibly very easy for malicious actors to attack the network.
The LUNA token price has tanked to $0.01, losing virtually 100% of its value in the past few days, with the ‘death’ of the coin coming amid a combination of a broader crypto crash and the collapse of the UST stablecoin after it lost its dollar peg.
TerraUSD (UST), currently at $0.34, is difficult to repeg despite Terraform Labs’ and Luna Foundation Guard efforts to save the coin.