Friday, March 29, 2024
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Developers halt Terra blockchain

According to a Twitter statement, developers have suspended the Terra blockchain at block height 7603700. The stoppage will bring all network transactions to a standstill.

The action is intended to prevent governance attacks in the aftermath of high LUNA inflation. According to CoinMarketCap data, the token’s circulating supply has increased to 3.45 billion tokens. The cost of possible attacks has been greatly reduced as a result of such tremendous inflation. Bad actors might potentially scoop up a significant number of tokens to acquire control of the network now that the governance token has become exceedingly cheap.

The token recently fell below one cent, wiping out tens of billions of dollars in value in a matter of days. Despite the enormous rise in LUNA’s circulating supply, the UST stablecoin is presently trading at $0.40, battling to restore its peg. Fitch Ratings warned earlier today that Terra’s demise would hasten calls for regulation.

Read more: According to Fitch, Terra Crash will boost regulation needs

Kunal Krishan
Kunal Krishan
Kunal is an investment space writer who firmly believes investment is something which should not be a choice but a part of everyone's life.
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