Validators halted the blockchain to prevent governance attacks as LUNA’s price plunged toward zero.
On Thursday, Terra validators chose to stop the blockchain to protect the network from potential governance attacks, the Terra Twitter account reported.
According to the platform, the network was “officially halted at block height 7603700,” as validators elected to pause operations “following a sharp inflation of $LUNA and a significantly reduced attack cost.”
“The Terra blockchain has resumed block production. Delegations are disabled now that the chain is live with the new code merge. Validators, please check the Discord announcements for the latest patch notes,” Terraform Labs tweeted shortly after the pause.
The Terra blockchain has resumed block production.
Delegations are disabled now that the chain is live with the new code merge.
Validators, please check the Discord announcements for the latest patch notes. https://t.co/CGQgfMDWQe
— Terra 🌍 Powered by LUNA 🌕 (@terra_money) May 12, 2022
At the time, Terra’s sharp depreciation had made the network vulnerable to exploitation by malicious actors.
LUNA’s price collapsed to $0.01, effectively wiping out nearly 100% of its value over several days. The token’s crash occurred alongside a broader crypto market downturn and the collapse of the UST stablecoin after it lost its dollar peg.
TerraUSD (UST) was trading around $0.34 and struggling to regain its peg, even as Terraform Labs and the Luna Foundation Guard worked to stabilize the asset.