Terra’s Collapse contributed to Cardano’s Vasil Hard Fork delay

Published by
Nonhlanhla P Dube

Cardano ($ADA) inventor Charles Hoskinson has said that the team opted to be extra careful after Terra’s collapse, which caused the network’s Vasil hard fork, which is anticipated to bring a “massive performance improvement,” to be partially postponed.

Hoskinson explained in a recently released video that after Terra’s ecosystem collapsed, the Cardano development team decided to proceed cautiously before releasing the Vasil hard fork, adding that he “gave a directive to a lot of the engineers to say we should probably measure three times and cut once given the nature of things.”

Hoskinson stated that the hard fork’s code is ready, so “you could probably flip the switch and get away with it,” but Cardano opted to go “above and beyond what we normally do for hard forks” by adding more tests to the Plutus suite, Cardano’s smart contract platform.

The algorithmic stablecoin UST from Terraform Labs lost its peg after a R7.9 million withdrawal from its Anchor Protocol caused a significant sale on Curve, where there was little liquidity. Due to the transaction, UST lost its peg, which resulted in a bank run.

The algorithmic design of UST allowed for the printing of trillions of LUNA as the stablecoin’s value continued to fall. Both turned out to be almost useless.

There will be four Cardano Improvement Proposals included in the Vasil hard fork, which is a significant upgrade (CIPs). Even in the midst of a general cryptocurrency market decline made worse by the collapse of the Terra ecosystem, ADA has already outperformed a number of other cryptocurrencies since the hard fork. Due to its success, ADA surpassed $XRP to rank as the seventh-largest crypto asset in terms of market value.

As a result of having “an enormous amount of contract with dApp [decentralized application] developers and other people,” Honsinkon added, there was a “want to be a bit more inclusive in the quality assurance process and the testing process,” which contributed to the hard fork’s delay.

The hard fork was supposed to launch on June 29, but the developers who are behind it decided to push it back to the last week of July.

Nonhlanhla P Dube

Nonhlanhla P Dube is a senior news reporter at Rateweb. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her directly by email at nonhlanhla@rateweb.co.za

Published by
Nonhlanhla P Dube