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Terra developers halt new transactions on stablecoin blockchain

The value of Luna fell close to zero on Thursday, while UST remained around 36 cents



(Illustration: Reuters)

A verified Twitter account for Terraform Labs said it would halt new activity on the Terra blockchain on Thursday, citing a need to avoid further damage to its ecosystem after the value of its hallmark TerraUSD and Luna tokens collapsed.

“The Terra blockchain was officially halted at a block height of 7603700,” the tweet said. “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’s community had previously been engaged in a seven-day vote on several proposals aimed at recovering activity on the blockchain, and eventually re-securing the peg of TerraUSD, better known as UST, which is supposed to be worth $1.

The value of Luna fell close to zero on Thursday, while UST remained around 36 cents, according to data compiled by Bloomberg and CoinGecko.

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First Published: Thu, May 12 2022. 22:27 IST