LUNA’s circulating supply also went to the moon after UST holders supposedly tried to cash out of the depegged stablecoin. Terra’s algorithm allows its stablecoin holders to swap 1 UST for $1 through a mechanism built to sustain the token’s dollar peg.
However, this process also mints LUNA coins and flooded the market with more tokens, further crashing LUNA prices. As of press time, the circulating supply stood as over 6.5 trillion. The Terra team also paused the network twice on Thursday and Friday to allow validators to work out a solution.
Block production has since resumed but on-chain swap support remains offline.
The Terra blockchain has resumed block production.
Validators have decided to disable on-chain swaps, and IBC channels are now closed.
Users are encouraged to bridge off-chain assets, such as bETH, to their native chains.
Note: Wormhole bridge is currently unavailable.
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