Terra Team Working To Unlock The Transfers Of LUNA and UST Between Chains

Terra team facing technical issues as Inter-Blockchain Communication passed but cannot be executed.

Technical Issues

The notable recovery may be a result of the recent efforts by the Terra blockchain to revive the network after the shutdown that followed the crash. However, the revival process seems to be facing some hurdles.

A recent statement by Terra reveals that the proposal to revive the network has passed but the execution is facing issues.

1/ Prop 1299 to (re)enable IBC has passed but did not successfully execute due to technical issues. Namely, the proposal attempted to enable IBC transfers which were already enabled ?. pic.twitter.com/mCgZyxu7O2

— Terra ? Powered by LUNA ? (@terra_money) May 23, 2022

Apparently, when UST had to be de-pegged from the USD, IBC (Inter-Blockchain Communication) channels were closed to prevent impermanent loss to UST, other IBC DEXs, and Luna pools on Osmosis. However, upon the passing of Proposal 1299 which sought to re-enable the IBC channels, the opening process didn’t execute properly.

The Team further said:

“During $UST’s depeg, IBC channels were closed (but not disabled) as a stop-gap measure to prevent impermanent loss being incurred on $UST & $LUNA pools on @osmosiszone & other IBC DEXs. As a result, users were then unable to transfer these assets across IBC chains.”

Terra Team Working On A Solution

Terra has acknowledged the technical issues facing the blockchain network and has assured the community that the team is working to find a solution and re-open the network to the community. The enabling of IBC would help to unlock the transfers of LUNa and UST between chains.

“We are aware of the issues associated with this proposal & are working on getting the IBC channels open for users as soon as possible.”

Meanwhile, plans to shore up Luna’s price are still discussed. Terra founder Do Kwon has proposed the execution of a hard fork to create a new Luna chain with new tokens that will then be airdropped to affected holders.

The new chain will also not be linked to UST. While the community was initially opposed to this idea during the preliminary voting round, the amended proposal was passed by core stakeholders. As of press time, UST is trading at around $0.08.

Luna Market Cap Surpasses $1 Billion

Terra Luna and UST have been on the receiving end of a rough market crash of late. LUNA’s price fell from over $100 down to less than $0.0002 while the UST stablecoin took a heavy hit that saw it de-pegged from the USD.

Now, Luna seems to be gathering itself up again as it records an increase in market cap. At the time of this writing, Luna’s market cap stands at around $1.3 billion while the price is at $0.00019. The price has recorded a 15% increase over the last 24 hours. This is a good sign as the Terra ecosystem struggles to recover.

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