Terra Labs has paused the Terra blockchain after its native cryptocurrency terra (LUNA) lost over 99% in a single day. The developers wrote in a tweet post that the network won't generate new blocks starting at a block height of 7603700. They added:
"Terra validators have decided to halt the Terra chain to prevent governance attacks following severe $LUNA inflation and a significantly reduced cost of attack."
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The firm said that validators are applying a patch to disable further delegations after which they will coordinate to restart the network. As of press time, LUNA is trading at the $0.01366 mark, losing 99.4% of its value within a day.
Earlier in May, an algorithmic stablecoin on the Terra blockchain called terraUSD (UST) lost its $1 peg, dropping in a moment to $0.3. Later the stablecoin rebounded to $0.8, but failed to sustain its growth and retraced down to $0.37.
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