Tera is paralyzed again and is considered ‘erasing history’ from the past few days

Key facts:
  • They are evaluating the actions to rearm the organizational and economic structure of Terra.

  • Yesterday, Grid was paused to prevent an attack on the referee.

On Friday, May 13, at 2 AM (UTC), Terra’s network was paused for the second time in 24 hours. The goal of its developers with this measure is to restructure the network, and one possibility is to return it to a “pre-attack” state, without the intervention of the Luna Foundation and using its stablecoin, terra USD (UST), with the guarantees that it supports.

Terra Confinement in Block 7607789 and informed Via the official Twitter account of the network. This situation had been witnessed a few hours earlier, when he was first arrested, CriptoNoticias reported.

With the shutdown of the network yesterday, developers They’ve introduced a patch that prevents new titles that aren’t vetted from being able to exercise their voting. This removes the option to delegate it to third parties as it used to be. This move was intended to prevent the referee’s attacks.

Additionally, Terra’s account retweeted a message from William ChenDeveloper Relations Manager for the Luna Foundation. This developer explained in his post that The community decides what to do with Terra.

The odds are on the table, according to Chen, It includes restoring the network to its state before the ‘attack’ it would have suffered according to its developers. This is the main theory used by the network’s creators to justify the crash that began last Monday, May 9.

Some options are being evaluated on Terra to reorganize the economy of the ecosystem. Source: Twitterstablechen

On the other hand, other actions being evaluated also necessitate the cancellation of the Luna Foundation (LFG), which is responsible for ensuring the operation of UST and terra (LUNA), the cryptocurrency that is being burned to issue the stablecoin. Regarding terrestrial treasuries, specifically, there is a proposal from developer Do Kwon that proposes a full escrow model for stablecoin.. This indicates that there is another underlying asset to support his issuance, and is different from the algorithmic method he is currently using to maintain parity with the US dollar (or at least to try).

Finally, Chen stated that they are in the process of “deliberate new mechanisms for LUNA”. The developer finished his letter saying that they would have to “save the residual value in the ecosystem and society and rebuild in the right way”.

Terra . bad news continues

While emergency and desperate decisions are made in the Terra community, The cryptocurrency ecosystem continues to respond to Terror Week Which has its own crypto assets UST, LUNA, and Decentralized Finance (DeFi) protocols, and which has had capital outflows of more than $25,000 million. The anchor is the most well-known and used among the DeFi protocols.

One alternative to “keeping” the UST stablecoin is to remove a portion of its coin (10%) to reduce supply and thus raise its price. At the time of writing this note, floor treasuries are trading at $0.16. This value is 84% ​​of the ideal price of 1 US dollar.

Some exchanges, such as Binance, ByBit and BitMex, have decided to remove the original crypto from Terra. However, these remained available on some decentralized exchanges until the network was shut down.

When this whole catastrophe unfolded, Other crypto assets like Bitcoin (BTC) and even stablecoins like Tether (USDT) have suffered the consequences. Of the losses caused by Terra. Also, many people reported that they suffered huge losses after the capital they invested in the underground tanks and LUNA disappeared in just a matter of days.

 

 

 

 

 

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