The Bitcoin logo sign outside the cryptocurrency exchange stall in Istanbul, Turkey, on Tuesday, April 26, 2022. Both technology and Bitcoin shares have carried out a large swing this year because the Federal Reserve becomes less accommodating as part of its struggle to fight inflation. Photographer: Erhan Demirtas/Bloomberg
The Crypto world has been fixed by his rapid collapse from Stablecoin Terrausd. But the explosion can produce something to note: the death of the main blockchain.

Terra Blockchain – Platform that supports a number of decentralized applications that allow users to exchange crypto coins and get results – stopped and then begun again twice in the last few days, as the main cryptocurrency value, Luna, and related Terrausd (Ust) Stablecoin collapsed after a Selling pressure wave .

Along the way, incentives for various parties to support the evaporated chain, sending ecosystems that maintain more than 110 applications that are connected with more than 4 million digital wallets into chaos.

While the chain runs again and there is an attempt in the work to make it continue to function-including the new plan proposed Monday by Co-Founder Do Kwon to start a new version of the blockchain without the ust-effort it might prove to be in vain Luna approaching zero. Meanwhile, many functions have been deactivated.

Terra in the current form is dead for all practical goals,” said Kyle Samani, one of the founders of Multicoin Capital.

The death of the crypto ecosystem with the size and depth of Terra-which was once worth more than $ 40 billion-marked a milestone in the history of the blockchain, digital ledger technology that was originally created to support bitcoin more than a decade ago and is now the basis of many cryptocurrency that has emerged since that.

A number of smaller blockchains have changed to The Walking Dead before, with their coins traded at a price of less than $ 1 and only a sprinkling of poor design users, conflicts between developers or hacking. They still have a handful of loyal fans, many of them dream of one day’s network will return and their coin values ​​will skyrocket, making them rich. Now Terra faces the same difficulties, but on a much larger scale.

I think the volume will dry up and rarely traded, then die,” said John Griffin, a financial professor at the University of Texas in Austin. “Once there is no economic incentive to maintain the blockchain, someone turns off electricity.”

Basically, blockchain is a database that can accommodate hundreds or thousands of applications and record related financial transactions. They are usually open-source, created by and enhanced by the developer community and supported by computer operators who verify transactions and get prizes with tokens or coins made specifically for use in certain blockchains. Tokens can also function as an award to improve code, develop new applications and so -called briefing, when holders give their coins to the computer operator booking exchange in exchange for income results. And investors often receive original blockchain or coins token related to their financial support rewards.

Spiral death

Blockchains, then, are fragile financial ecosystems of validators, users, developers, investors, and others, with their participation directly related to the welfare and awards of the token chain. The hope is that more and more participants are involved and activities increase, coin values ​​will increase, attract more users and create a good circle. But if the chain tokens collapse, the economic incentives of everyone to support the chain of evaporating as well. If the loss of value seems permanent, only a few ideological fans remain – everyone goes. That’s how the blockchain can die.

In the case of Terra, one of the network foundations is Ust Stablecoin, which stopped working as referred to about a week ago. Ust is designed to use traders algorithms and incentives in relation to Luna to store 1-to-1 pegs with dollars, but this mechanism strikes as the biggest sales, triggers a deeper decline in Luna.

With Luna collapsed, Actvity dries throughout the blockchain. The bet has stopped: Only 0.01% of all Luna are at stake at this time, according to the Tracker Terra station. The total terra value is locked in applications such as the anchor protocol defi platform has fallen dramatically, sliding from more than $ 31 billion, April to the negative area, according to Defi Llama, another tracking. And Terra DAPP Expo – An event scheduled for June and is designed to display a developing blockchain development ecosystem – has been canceled.

We have monitored the public’s response to the TDX idea that continued, and after careful consideration, we sadly decided to cancel the event.
The decision was not lightly made and destroyed the news for everyone involved.

– TERRA DAPP EXPO (@terradappexpo) May 14, 2022

It takes one or two weeks to think about what will happen next,” the developer of the Nexus Protocol, who helps Terra users get results, told Bloomberg in a message via Twitter. “Our team is grieving, our community is grieving.”

Polygon, a rival blockchain project, has seen the entry of the developer escape the network.

A chain is considered dead when a new developer does not come to build it and the existing developer gradually moves,” Gupta said.

For the Terra community project that wants a chain together, select @0xpolygon Pos Chain (Zkrollup Soon)

If you are looking for Application Specific Chain, you can go for Supernet

-No there is no strange limit on the validator/bridge possibly the future to make your chain a rollup-eth love community https://t.co/ek803ozqll
– Sandeep – Use stripe on polygon (@sandeepnailwal) May 1522

Not everyone has given up the chain to die. One of the founders of Terra, Do Kwon, is still trying to revive these efforts and produce plans B. Initially, there is hope for Bailout Ust; But that hope is dead.

1/ I have spent the last few days on the telephone calling members of the Terra Community – builders, community members, employees, friends and family, which have been destroyed by detegging ust.

I broke my heart about the pain that had been brought by my discovery to all of you.
– Do Kwon (@stablekwon) May 13, 2022

Kwon has proposed to reconstitute chain while admitting that “we will lack the ecosystem to rebuild from Abu” Luna. But even some investors that Terra used to like the idea of ​​change such as Forking – Copying the existing blockchain to start again.

Mining, Forking Don’t Create Value,” Zhao “CZ” Changpeng, Head of the World’s Biggest Crypto Exchange Executive, Binance, who invests in the Terra blockchain project in 2018, said on Twitter.