Terra (LUNA) Blockchain Halted by its Team to Prevent Governance Attacks 14

Terra (LUNA) Blockchain Halted by its Team to Prevent Governance Attacks

Quick take:

  • The Terra blockchain has been halted by its team
  • Terra Validators have decided to stop the Terra Chain to prevent governance attacks
  • Such attacks have become cheaper given LUNA’s ongoing price drop and inflation
  • Over 15 billion LUNA coins have been issued today
  • Binance, Bybit, and Bitmex have delisted futures contracts related to Terra (LUNA)

The team at Terra (LUNA) has announced via Twitter that they will be halting the blockchain at block height 7603700. Terra validators made the decision as a means of preventing governance attacks as a result of LUNA’s ongoing inflation and the significantly reduced cost of such attacks on the network.

At the time of writing, the ‘validators are applying a patch to disable further delegations, and they will coordinate to restart the network in a few minutes.’

15 Billion Terra (LUNA) Issued in One Day

According to the team at WuBlockchain, more than 15 billion LUNA have been issued today, thus leading to a total supply of 18 billion. The resulted inflation has resulted in the price of LUNA dropping to a local low of $0.00354. To note is that Terra (LUNA) hit its all-time high of $119 less than two months ago, on April 5th, 2022.

Binance, Bybit, and Bitmex Delist Terra (LUNA) Futures Contracts

The inflation surrounding LUNA is part of the balancing aspect designed to help TerraUSD (UST) maintain its $1 peg. Every time $1 worth of UST is minted, a similar value in LUNA is destroyed. So when the price of UST drops below the $1 peg, traders burn UST to remove it from circulation, consequently reducing its supply and creating demand. The burning of UST involves the issuance of LUNA. In this case, the creation of Terra (LUNA) to correct UST’s massive depegging has caused the ongoing inflation and price drop of the latter digital asset.

LUNA’s woes in the crypto-markets have further been compounded by the three crypto exchanges of Binance, Bybit, and Bitmex delisting its perpetual contracts.

Earlier today, Binance announced that it was delisting the coin-margined LUNA perpetual contract. Furthermore, the exchange has revised its leverage and margin tiers to reflect the current market conditions. Additionally, Bybit also announced today that it delisted the LUNA/USD reverse contract. The crypto exchange of Bitmex also followed a similar path by delisting the LUNAUSDT and LUNAUSD perpetual contracts on the platform.