The meltdown of Terra in the last few days resulted in a brief halt in Terra blockchain for close to two hours on Thursday. Terra’s validators have decided to halt the blockchain to prevent governance attacks following severe LUNA inflation and a significantly reduced cost of attack. The Terra blockchain was officially halted at a block height of 7603700, Terraform Labs said in a tweet.
The halt came in the event of UST’s depegging from the dollar level, which it was meant to maintain but plummeted over 99% in the last few days.
Block Production Resumes
Following the halt, the company shared an update stating validators are applying a patch to disable further delegations, and that they will coordinate to restart the network in a few minutes. “The Terra blockchain has resumed block production, the company announced later, adding that delegations are disabled now that the chain is live with the new code merge.
Earlier in the day, the company said it had proposed three new emergency measures to save LUNA and UST stablecoin. It proposed to burn all UST in the community pool, burn the remaining 371 million UST cross-chain on Ethereum, and stake 240 million LUNA to protect from network governance attacks.
As of writing, Terra was trading at $0.02468 according to CoinMarketCap.
Tightening Noose Around Crypto
Meanwhile, UST’s crash sparked debate over the future of stablecoins, while denting sentiments in the cryptocurrency market. On Tuesday, U.S. Treasury Secretary Janet Yellen mentioned UST during the Senate banking committee hearing. She called for better crypto regulation to prevent possible financial risks similar to Terra’s crash.
Further tightening the noose, the International Organization of Securities Commissions (IOSCO) on Thursday said financial market regulators around the world are likely to launch a global crypto regulation body next year.
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