Terra Blockchain Shuts Down Again After A Restart

Terra blockchain shutdown
  • As Luna Loses 99.9% of Market Value in 24 Hours
  • Terra blockchain was halted overnight to prevent attack on its governance structure
  • The announcement said restart would be in minutes
  • It restarted hours later but shut down again
  • The Terra blockchain is still in comatose state
  • LUNA and UST are down below $1

The Terra blockchain was restarted after validators halted it for about 1 hour 20 minutes at block height 7603700. The halt was initiated by the network validators on May 12, to avoid governance attack. The release by the team prior to shutdown said that the network will be restarted after a few minutes.

The update said that validators are working at restarting the blockchain after applying a patch that disables further delegation.

Another Shutdown After A Restart

The Terra blockchain restarted, at 01:45 am HKT. It shut down again 8 hours later at block height 7607789.

An update from the Terra team released earlier on May 12, said that the validators have halted the Terra blockchain. This is in a bid to find a solution to the crises besieging the Terra ecosystem. The release said that the blockchain was halted at a block height of 7603700.

The update from Terra (UST) Powered by Luna said that:

“Terra validators have decided to halt the Terra chain to prevent governance attacks following severe $LUNA inflation and a significantly reduced cost of attack.”

LUNA and UST Losses

LUNA, the internal currency of the Terra blockchain has lost 99.9% of its market value in the past 24 hours. Data available at Coinmarketcap shows that the coin is trading at $0.00004046 on May 13, 2022. This is a 100% drop in its value a week ago. The market capitalization of LUNA is down by 13% at $238.7 million. Its trading volume has also dropped by 92.71% showing that agitated investors have mostly closed their positions. LUNA is now ranked #230 according to its market cap.

LUNA chart

UST, the Terra USD pegged stablecoin that depegged from the USD is down by 67.26% at $0.1648. The stablecoin has slid to #37 from #10. A 69.34% drop in capitalization puts its market cap at $1.8 billion.

Community Incentives

Meanwhile, the Terra community manager made a post on Twitter, asking users to submit their LUNA addresses and retweets, raising speculations that the platform intends to incentivize the community through an airdrop as they work at a solution to the crash in the value of their tokens.

The Luna Team has also asked for  feedback from the community as it works on a recovery plan for the network. A tweet from the network states:

“We definitely need more feedback to see a recovery plan for $LUNA and $UST. The whole #bitcoin world needs to get ready for this clarification.”

Author: Jofor Humani

Jofor is a crypto journalist with passion for investigative review of projects with the aim to determine the authenticity of their claims.