The Terra project team reported that the validators decided to stop the blockchain at block height #7603700. The move was explained by the need to protect the network from potential “administration attacks”.

The Terra blockchain is officially discontinued at block height 7603700.https://t.co/squ5MZ5VDK

Terra validators have decided to stop the Terra chain to prevent governance attacks after serious problems. $LUNA inflation and significantly reduced attack cost.

— Terra (UST) 🌍 Powered by LUNA 🌕 (@terra_money) 12 May 2022

“The Verifiers have decided to halt the Terra chain to prevent attacks on governance after massive LUNA inflation and a significant drop in attack costs,” the developers wrote.

According to CoinGecko, at the time of writing, the LUNA is trading at just over $0.01. Theoretically, due to the very low price of the native Terra token, an attacker could buy a large amount of cryptocurrency and use it to attack the network.

Previously, Terraform Labs presented a set of measures aimed at restoring the UST algorithmic stablecoin and the LUNA cryptocurrency. One of the most important of these is the activation of offer 1164, which was mentioned earlier by Terraform Labs president Do Kwon.

The initiative includes expanding the LUNA base pool and increasing cryptocurrency issuance, which will allow the required number of stablecoins to be withdrawn from circulation faster. However, the move de facto devalued the native token – the market supply has exceeded 40 billion coins, according to SmartStake.

Terraform Labs has also allocated 240 million LUNA to protect against potential attacks on network management. However, it seems that with such a dramatic depreciation, validators felt that these funds were not enough.

Recall that CoinDesk journalists learned that Do Kwon was one of the anonymous co-founders of the crashed algorithmic stablecoin Basis Cash.