Terraform Labs, the company behind the TerraUSD and TerraLUNA cryptocurrencies, briefly halted the Terra blockchain for two hours on Thursday after the Terra ecosystem crashed.
After the block height of 7603700, no new blocks were being generated on the network, and Terra assets couldn't be moved until the block was unfrozen.
Terra validators have decided to stop the Terra chain to prevent governance attacks following severe $LUNA inflation and a significantly reduced cost of attack.
TerraUSD plummeted over 99% earlier this week after it was depegged from the $1 level it was supposed to stay at.
Once two-thirds of the voting power comes online, the network should go live again and delegations will be disabled.
The founder of both cryptocurrencies unveiled a plan yesterday in hopes of fixing the situation.
The Terra community proposal would increase the amount of LUNA that could be minted by four times so that holders can sell more quickly, or it would only be possible for a certain amount of UST to be sold.
LUNA's price plummeted since yesterday, and it would be vulnerable to dropping even more if the minting capacity was increased.
The proposal has receivedPukiWikiPukiWikiPukiWikiPukiWikiPukiWikiPukiWikiPukiWikiPukiWikiPukiWikiPukiWikiPukiWiki votes have been cast in favor of the proposal and zeroPukiWikiPukiWikiPukiWikiPukiWikiPukiWikiPukiWiki votes have been cast against it. The number of votes increased by 270%. It is not clear if Kwon will continue to support the proposal.
When acryptocurrencies collapses and becomes incredibly cheap and more is being minted, anyone can just scoop up majority control of the network. Halting is a last resort.
In the past few days, UST has fallen from its $1 peg, and LUNA has fallen 99%.
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