Do Kwon, the founder of Terra blockchain has proposed a new plan to revive the network that has been hampered by the collapse of UST and, at the same time, the LUNA token.
According to Kwon, there’s no going back to UST, which collapsed after failing to defend its peg to the US Dollar. Therefore, even if this peg gets restored, “the holders of Luna have so severely been liquidated and diluted that we will lack the ecosystem to build back up from the ashes,” he said in a forum post.
Do Kwon proposed revitalizing the Terra Blockchain: “We’ve built up one of the largest and most vibrant developer ecosystems in crypto, with some of the smartest minds in the world working on products with the best UI/UX,” he said. (Read More: What should I do during bear market?)
How to save the Terra Blockchain, Do Kwon’s idea is to reset the network ownership to 1B tokens, to be listed among:
New Proposed Terra Distribution by Do Kwon:
- 400M (40%) to Luna holders before the depegging event (last $1 tick before the depeg on Binance should be reasonable), bLuna, LunaX and Luna held in contracts should also be recipients, minus the Terraform Labs account at terra1dp0taj85ruc299rkdvzp4z5pfg6z6swaed74e6. The new chain should be community owned. Preserving decent ownership of the network in its strongest believers and builders is important.
- 400M (40%) to UST holders pro-rata at the time of the new network upgrade. UST holders need to be made whole as much as possible
- 100M (10%) to Luna holders at the final moment of the chain halt – last minute marginal luna buyers should be compensated for their role in attempting to provide stability for the network
- 100M (10%) to the Community Pool to fund future development.
- All Luna besides the third tranche should be staked at the network genesis state.
- The network should incentivize its security with a reasonable inflation rate, say 7%, as fees will no longer be enough to pay for security without the swap fees.
Kwon said UST holders deserved to be compensated for these tokens they have been holding “until the end.”
WIll LUNA recover?
For the Terra founder, the embattled blockchain needs the community to help it grow and become valuable again. “The only way to do this is to make sure that token holders before the attack commenced, the most loyal community members and builders, stick around to keep providing value,” he added.
The price of LUNA crypto is currently ₱0.02 or $0.0003, which is actually up 136% vs the previous day at the time this article is written. LUNA, however, is down 100% in the last 7 days. Luna’s all-time high price was $119.18, which was hit last April 5, 2022.
What happened to Terra USD and LUNA? UST, an algorithmic stablecoin, backed by LUNA, lost its peg to the US Dollar, bringing down LUNA (which backed it) and the entire crypto market. Read here for the full summary on BitPinas.
This article is published on BitPinas: Will LUNA Recover? Do Kwon Proposes Ambitious Revival Plan for LUNA and UST, without UST
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