The Terra network, where the terra (LUNA) and terra USD (UST) cryptocurrencies are processed, was paralyzed minutes ago, at block 7,603,700.
The event occurred, as reported by Terra from its official channels, after a decision by the network's validators in order to avoid governance attacks.
This occurs after, as CriptoNoticias reported this morning, UST holders massively burned (destroyed) their coins, with the consequent issuance of LUNA. To understand this, keep in mind that for every UST that is burned, an equivalent amount of LUNA is emitted.
Luna is the governance currency of Terra and it is considered that, if the blockchain had not been paralyzed, there could have been attacks on the protocol, since its possession grants voting power in decisions about the network.
Although movements of the tokens of that network cannot be made on the block chain, both cryptocurrencies continue to be listed on some centralized exchanges. At the time of publication of this article, the price of UST (thought of as a stablecoin) is $0.36 and the price of LUNA is $0.016.
According to Terra, validators are applying a patch with the aim of disabling delegations (that is, addresses that are not validators can vote or make proposals). Validators "will coordinate to restart the network in a few minutes"