Amid heavy crashes in the Terra and UST, the validator of the Terra blockchain decided to halt the further block creation to prevent any possible governance attack following LUNA inflation.
The official tweet from Terraform Labs revealed that the blockchain has been halted at the block height of 7603700 after the graph of UST and LUNA fell in an unexpected manner.
Later on, Terraform resumed block production by updating the code to disable further delegations. Terraform Labs disclosed a patch before validators restart the network. The lab added that the network would start again when ⅔ of the voting power comes online.
After two hours, the blockchain resumed its block production. The chain went live with the new code merge. However, in a short time blockchain again went offline at the block height of 7607789.
In less than 24 hours, LUNA’s market cap plunged to $1 with a more than 90% fall after the de-pegging issue generated in UST. At the time of writing, its market price almost became zero as it is trading around 0.000044. While UST lost its peg with USD and is trading around $0.17.
Also Read: Why Terra Luna is Crashing Down with its Stablecoin UST?
On Saturday, UST fell for the first time below its peg value with USD, and since then its downfall has become endless. Its adversary effect also impacted LUNA which has plunged its market capitalization from nearly $40 billion to $1 billion in less than a month.
However, the creator of the Terra, Do Kwon proposed a mechanism to overcome the de-pegging issue created in UST with the help of LUNA. The founder proposed a mint-and-burn mechanism for the stabilization of UST prices.
