Terra (LUNA) Price Falls as Investors React to Network Outage and Loss Claims Deadline

• Terra (LUNA) suspends blockchain operations to address a suspected exploit with an emergency patch.
• Recent Terra upgrades included burn tax distribution improvements and Oracle Split logic enhancements.
• Terra’s swift response to security concerns highlights its commitment to blockchain stability and governance.

Terra (LUNA) has temporarily halted its blockchain operations to deploy an emergency patch. The action follows a recent upgrade aimed at bolstering the blockchain’s security and efficiency.

Terra announced the pause at block height 11,430,400 via X, detailing plans to collaborate closely with network validators to implement crucial security enhancements. This safety measure aims to mitigate potential risks following the detection of a suspected attack within the system.

Prior to this incident, Terra successfully launched version 3.1.3 of its software on July 29, introducing major improvements, including revised burn tax distribution to increase staking rewards, Oracle Split logic, and enhancements aimed at preventing memory leaks. This upgrade, executed at block height 19,108,180, is part of Terra’s ongoing efforts to refine and secure its platform.

Bybit exchange also announced its backing for the Terra Luna Classic upgrade, highlighting its commitment to supporting innovations that enhance the security and functionality of emerging blockchain ecosystems.

Amidst these technical developments, Terraform Labs Pte Ltd (TFL) and Terraform Labs Limited (TLL) issued a critical notice to their community regarding the Preliminary Crypto Loss Bar Date.

Set for August 21, 2024, at 5:00 p.m. (ET), this deadline applies exclusively to filing Crypto Loss Claims for chapter 11 voting purposes, covering losses incurred before January 21, 2024, for TFL and before July 1, 2024, for TLL.

This notice highlights the separation of claim filing for voting purposes from the broader issues of allowance or distribution, which will be managed through the chapter 11 plan.

Following these announcements, the price of Terra (LUNA) experienced a downturn, currently trading at $0.3883, reflecting a 4.81% decrease over the last 24 hours and a 7.10% decline over the past week.