Terra Blockchain has temporarily halted block production and plans to restart the network with a patch.
The Terra blockchain had stopped creating blocks around mid-afternoon Eastern Standard time at the time of publishing. According to the team’s Twitter account, the Terra blockchain was formally terminated at a block high of 7603700. Following significant $LUNA inflation and a significantly lowered attack charge, Terra validators have chosen to droop the Terra chain in order to avoid governance assaults.” Terra’s native token LUNA reached an all-time low of $0.00825774 per unit on May 12, 2022. Terrausd (UST), a once-stable currency, has been highly erratic, with a 24-hour price range of $0.842598 to $0.315279 per coin. UST, which was formerly rated in the top ten, is now ranked 25, while LUNA, which was once placed in the top ten, is now ranked 25.
Following the upgrade, the Terra team stated that a patch to reset the network was in the works. The team said, “Validators are deploying a patch to block future delegations, and they will cooperate to restart the network in a few minutes.” The Terra crew had reported that the system was experiencing significant pressure nine hours before. “The present peg pressure on UST from its current supply overhang is causing significant dilution of LUNA,” the scientists explained. “The fundamental challenge is removing bad debt from UST circulation quickly enough for the system to restore the health of on-chain spreads.” Several steps are being made to accelerate this aim. First, the current Prop 1164 will increase the size of the base pool and accelerate the burn rate of UST, which will assist to reduce on-chain spreads.”
Following the patch update, the team stated that the patch release codebase was now available, adding, “Delegations will be removed once block production resumes.” When two-thirds of the voting power is online, the network should go live. “An update will be supplied as soon as possible.” The Terra chain has been in the spotlight for a few weeks now, as the project’s developers began stockpiling huge amounts of bitcoin (BTC) to preserve the UST peg. While the media was originally supportive of Terraform Labs, recent headlines about the Terra environment have been nothing but negative.