$Terra(LUNA.CC)$ has officially stopped block production as the blockchain's native token hit a low of $0.000033 on Thursday.
What Happened: An update on Twitter from the network's official account confirmed that the Terra blockchain had "officially halted" at block 7607789.
This is the second time over the last 24 hours that the blockchain has halted production.
Terra validators have decided to halt the Terra chain to prevent governance attacks following severe LUNA inflation and a significantly reduced cost of attack."
- Terra stated earlier today.
The blockchain resumed production around 2 hours later only to go offline once again with the premise of coming up with a plan to reconstitute it.
The team also put forth the "LUNA Go Forward Proposal" as part of an effort to compensate existing TerraUSD (CRYPTO: UST) holders, LUNA holders, and developers.
It doesn't look like the peg stability mechanism is going to restore peg in the short period of time."
- Terra core developers stated.
As per the proposal, Terra plans to halt blockchain validation first and then distribute a new token to the remaining members of its ecosystem.