Terra says it has halted blockchain for second time in 24 hours

Layer 1s • May 12, 2022, 10:36PM EDT

With its native token LUNA and stablecoin UST in freefall, Terra says it has halted its blockchain for the second time in 24 hours.

In a tweet posted at 10:13pm Eastern Time, Terra said its blockchain “has officially halted at block 7607789.”

“Terra Validators have halted the network to come up with a plan to reconstitute it. More updates to come,” it continued.

The Terra blockchain has officially halted at block 7607789.

Terra Validators have halted the network to come up with a plan to reconstitute it.

More updates to come.
— Terra (UST) 🌍 Powered by LUNA 🌕 (@terra_money) May 13, 2022

The blockchain was first paused on May 12 over fears that it had become vulnerable to attack. Developers at Terra then announced at 2:05pm ET that block production had resumed, albeit with staking disabled.

The crisis at Terra was triggered when its algorithmic stablecoin UST de-pegged from the US dollar. It now sits at around $0.19, per Binance data, despite frantic efforts to restore the peg by issuing huge volumes of LUNA.

The circulating supply of Luna (LUNA) topped 25 billion on May 12, with minting reaching unprecedented levels as Terraform Labs CEO Do Kwon and others try to ease UST selling pressure.

About Author

Ryan Weeks is deals editor at the The Block, focused on fundraising, M&A and institutional trends in the crypto space, among other things. He is particularly interested in investigative work — so please send tips! Ryan previously worked at Financial News, Dow Jones as a fintech correspondent in London. Prior to that, he wrote for several different publications, including Sifted, AltFi and Wired. Beyond journalism, Ryan is a keen reader and writer. He enjoys all things active, especially running, rugby, climbing and tennis.