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Terra officially halted block production at 09:58 am HKT on Friday, block height 7607789, after restarting the network from an overnight shutdown to prevent possible governance attacks. Terra said validators are working on a plan to restart the network but did not release any further details.
See related article: Terra plunges back to earth as UST stablecoin loses dollar peg
A governance attack is a form of a hostile blockchain takeover when a single party controls at least 50% of a network’s governance tokens, giving them rights to majority voting power in the ecosystem.
The plunge in Terra’s governance token LUNA has significantly reduced the cost to conduct a takeover.
Terra released a patch disabling delegations — staking tokens to a public validator node to earn further rewards — on the network which was adopted once the network resumed production.
LUNA was worth US$0.004157 at press time, and Terra’s algorithmic stablecoin has yet to regain its peg to the greenback.
UST’s peg to the dollar is maintained by regulating LUNA supply.
Terra proposed an upgrade on Thursday to increase production of LUNA to attempt to save the stablecoin’s peg.
See related article: Terra’s UST fiasco cited by Yellen, who warns about stablecoins