Terra validators have just decided to officially stop network activity. This is to prevent governance attacks after the massive devaluation of the LUNA token.
The Terra blockchain has been discontinued
Terra’s official Twitter account confirmed that the blockchain network was shut down at a block number 7,603,700. This move follows a series of dramatic events that led to an unprecedented price drop for the LUNA token and its associated stablecoin called TerraUSD (UST). The stablecoin, which was designed to always be pegged to the price of the US dollar, lost its peg to the dollar earlier this week. The price of the so-called stablecoin fell below $0.30.
A major reason for the massive devaluation of the LUNA token is that the number of LUNA tokens in the market is 20 times higher than 4 days ago. At the time of writing, 1 LUNA token is only worth 1 dollar cent. The UST stablecoin is trading at a price of $0.37.