Validator leaks secret LUNA ‘war room’ chat logs

THORmaximalist, a Terra validator, released the afloat chat logs of the events starring up to the motorboat of LUNA 2.0.

The radical was named “Terra Rebirth League” and contained members of Terraform Labs, including Do Kwon and astir large validators. The speech began connected May 12, 2022, via Telegram and showcased a chaotic messiness of disorder and uncertainty.

The propulsion to merchandise Luna 2.0 was seen arsenic a substance of urgency wrong the “war room.” As Terra validator, THORmaximalist exclusively told CryptoSlate:

“I deliberation it was urgent and each time that passed by worth was drifting away. Protocols were reasoning astir moving to different chains oregon starting their ain L1s.

The projects connected the concatenation are multiplicators of assemblage value. Every azygous time that would person passed the multiplicator would person went down.”

Organized chaos

The interior radical defined itself arsenic “a specialized ongoing task force, independently operated, ever critically assessing each onslaught vectors/vulnerabilities” by BigB from the validator, Smart Stake. One subordinate projected “to enactment the 5 validators with the highest voting powerfulness successful complaint present (at slightest of coordination).”

At 1 point, Do Kwon commented, “well, for 1 thing, the whale with beth staked successful anchor and shorting UST volition beryllium locked determination for 2 days, truthful if the marketplace nukes, past he’s fucked.”

Aside from this, the 3 main issues identified connected May 12 were:

“1) Market module is inactive moving – Yun is moving for the patch

2) Bridged plus is locked – not definite we gonna attraction astir this

3) Distribution program for the caller chain”

One happening is wide from the conversation, determination was nary wide leadership, and the statement was often fragmented. Members debated which protocols needed to beryllium taken into account, with nary azygous root of information for the dApp that would person vulnerability to a determination to fork oregon relaunch a caller chain.

A stablecoin for LUNA 2.0

According to the logs, introducing a caller stablecoin to LUNA 2.0 was a portion of the semipermanent program discussed by the “war room.” There was adjacent a proposition to rebuild from scratch utilizing “longwave radio” to make a blockchain that “does not request the net to function.” It is unclear from the thread whether this was a joke.

A crypto-backed algorithmic stablecoin was suggested to beryllium included successful the caller LUNA chain. The stablecoin was indicated successful a insubstantial written by members of IOHK, the institution down Cardano. It proposed:

“an algorithmic stablecoin protocol that behaves similar an autonomous slope that buys and sells stablecoins for a terms successful a scope that is pegged to a people price. It is crypto-backed successful the consciousness that the slope keeps a volatile cryptocurrency successful its reserve. The reserve is utilized to bargain stablecoins from users that privation to merchantability them. And gross from income of stablecoins to users are stored successful the reserve.”

Confusion connected erstwhile to restart

When the archetypal telephone to restart the blockchain came, galore validators did not cognize what artifact tallness they should beryllium astatine or, successful fact, astatine what clip they should resume their node risking “db corruption,” according to the chat.

A subordinate of TerraformLabs adjacent asked, “Could idiosyncratic enlighten maine connected what this caller merchandise is for oregon what it does?” The planetary organisation of validators besides caused a occupation arsenic galore were “sleeping aft the past days of chaos.” Rohit from Coinbase Cloud commented:

“Never seen much disorder connected thing this serious.”

Even Do Kwon himself stated successful the group:

“Can idiosyncratic summarize the issue? I’m beauteous confused.”

Furthermore, the radical had nary thought whether it had capable voting powerfulness to marque changes, adjacent if it could scope a statement connected a direction. Eventually, the radical created a Notion array to ascertain the presumption of each validator earlier restarting the chain.

Do Kwon had the last say.

The validators decided to clasp disconnected connected restarting the concatenation adjacent with 63% support until they received “TFL’s blessing to restart the chain.”

When validators yet received connection from Do Kwon, helium delegated and asked different squad members to “guide connected web motorboat sequence… I haven’t done it successful a while, and I forget.”

At this point, BigB from SmartStake wrote:

“I recognize validators correspond assemblage interests but these decisions person hugh ramifications. If tfl/others privation to play harmless for ineligible reasons and these decisions ought to beryllium taken by others, I americium acrophobic everyone should beryllium taking ineligible opinions earlier chiming in. It can’t beryllium that TFL led from the opening and present it’s upto validators oregon assemblage (which isnt represented here).”

However, TerraformLabs had to pb the process arsenic validators were reticent to restart the concatenation without its “blessing.” Further, members astatine 1 constituent stated the adjacent steps were to “Ask Do [Kwon] for greenlight + authoritative announcement.”

After galore hours of debate, the radical took a abbreviated interruption astatine 4 americium portion waiting for connection from Wormhole.

Wormhole’s enactment was needed arsenic the superior rationale for restarting the concatenation was to let users to span their assets backmost to their autochthonal chain.

Luna Classic to adjacent aft a month?

The radical intended to restart the concatenation lone for 1 period based connected the chat logs. Whether this is inactive the extremity is presently unknown. The radical yet decided to restart the concatenation without taking it to assemblage governance (due to the concatenation being offline), and astatine this point, Jiyun from DSRV declared:

“Let’s marque successable fail. for the community.”

It seems that by this point, immoderate of the radical had each but fixed up connected the conception of on-chain governance for LUNA, with Peter from Chainlayer saying:

“you bash recognize that successful the past hours of the concatenation radical were capable to bargain billions of terra for scratch? and that onchain governance (assuming they got immoderate retired of it and its not each successful exchanges) is beauteous overmuch successful the hands of the idiosyncratic that scooped up the astir Luna?”

Around 6 am, the last determination to motorboat the concatenation appears to person travel from Do Kwon,

“Do said let’s go? So let’s go!”

Post-launch issues

Since the launch, determination person been countless issues, including pricing oracle mismatches and incorrect amounts of tokens being airdropped. Regarding issues related to the risk/reward of LUNA 2.0 motorboat being deployed rapidly and the consequent oracle issues with Mirror Protocol, THORmaximalist told CryptoSlate:

“There was issues and the [Mirror Protocol] squad should person caught them precise very early. Right present luna sits astatine adjacent to 10B fdv. In a week from present it would person been 1-2. I deliberation the hazard reward was good.”

The speech was frantic and confused throughout. However, what is astir frustrating erstwhile speechmaking the logs is that determination were galore knowledgeable radical successful the room, but Telegram arsenic a mean for speech was not optimal.

Much of the treatment successful crypto happens connected Telegram, but it’s hard to judge that this was the astir businesslike mode to determine connected the relaunch of a concatenation worthy implicit $16 cardinal conscionable a fewer hours previous.

The afloat transcript of the interior conversations betwixt Do Kwon and the validators tin beryllium recovered connected the blockchain, preserved forever.