Terraform Labs, the company behind the Terra USD (UST) and Terra (LUNA) cryptocurrencies, briefly halted the Terra blockchain for two hours on Thursday following the Terra ecosystem’s meltdown this week, which caused its stablecoin, UST, to crash, taking with it the rest of the cryptocurrency market.
The halt meant no new blocks were being generated on the blockchain network after its block height of 7603700, and holders couldn’t move their Terra assets until the blockchain was unfrozen.
“Terra validators have decided to halt the Terra chain to prevent governance attacks following severe $LUNA inflation and a significantly reduced cost of attack,” the company tweeted.
The move comes after Terra’s not-so-stablecoin TerraUSD (UST) depegged from the $1 level it was supposed to stay at and plummeted over 99% earlier this week.
The company previously stated that delegations will be disabled once block production resumes, and the network should go live again once two-thirds of the voting power comes online.