New Statement from Terra (LUNA): Network is Active Again and Plan is in Action!
Terra (LUNA) had decided to discontinue the Terra blockchain yesterday. The Terra team said that while halting all block transactions, this was due to severe LUNA inflation and significantly reduced cost of attack. In this process, the team took action by stopping the network to prevent all attacks. Today, however, the team heralds that the network is active again.
Network Back Up!
In a statement, the Terra team states that the blockchain has restarted block production. However, the team also says that on-chain swaps of validators are disabled and IBC channels are now closed. In addition, the team reports that off-chain assets such as beTH will be tied to their own local chains. In the statement, the team also says that the wormhole bridge is out of use, and with a later update, the wormhole bridge is now active.
What ‘s going on is tragic for LUNA and UST. Losing more than 99% of its value, LUNA cannot stay strong after this attack. In this process, Terra’s nonprofit foundation first found the solution to lend Bitcoin (BTC) to the market. However, Terra’s CEO, Do Kwon, canceled this plan, arguing that the solution was to stake the overprinted LUNAs while increasing the supply of UST by burning these tokens.
What Can This Bring?
However, the developments show that since LUNA was not burned, the UST , which lost its dollar fixed, could not be recovered. And this caused LUNA to go to the bottom in price. Thus, crypto exchanges started to draw attention to the fact that the tokens, which are already in print, but whose amount is increasing, are not on the exchanges. Binance and CryptoCom had made the decision to suspend LUNA trading, arguing that the growing but uncirculated LUNA poses a risk, of course.
On the other hand , Terra , by activating its network again, actually instills hope in LUNA investors. Even though the LUNA burns have not taken place yet and the UST constant has not been restored, perhaps the plan can start again with this move. It is important at this point that UST recovers its constant. Because this is actually what determines the future of LUNA, which is algorithmically connected to the UST.