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Founder of Terra (LUNA) publishes plan to try to recover cryptocurrency

Founder of Terra (LUNA) publishes plan to try to recover cryptocurrency

Amid the negative repercussions of the collapse of the Terra (LUNA) cryptocurrency and UST, Do Kwon, one of the main responsible and founder of the Terra project, announced on his blog the Luna revitalization and rebirth project, however, the proposals seem not to be. to please everyone. In his post on the Terra forum, Kwon explains what he believes needs to be done for the project to return to normal operation and that includes a restructuring of the UST tablecoin, as “it cannot exist in its current form.”

“Even if the ballast will eventually recover after the last margin buyers and sellers capitulate their profits, Luna’s holders have been liquidated so severely and their balances diluted that we don’t have the ecosystem necessary to rise from the ashes. While a decentralized economy needs a decentralized currency, UST has lost a lot of trust with its users.” , said kwon.

One of the proposals for the revitalization of the Terra network is to reset the properties of the network to one billion tokens, which will be distributed as follows: 40% of LUNA to holders from before the loss of ballast; 40% for UST holders before distribution; 10% for LUNA holders at the final moment of network separation; 10% for the community reserve. Kwon justified the distribution and the plan to fork the Luna blockchain as a way to continue building the project’s community, ensuring that the holders who were in the project before the collapse, the “most loyal” ones, stay together with the community to continue. creating value.

“It’s a difficult balance – and there are no easy answers to redistributing value within the network. But the value needs to be redistributed to allow the ecosystem to survive and in its current state, it will not.”

Decision did not please everyone

Many criticized LUNA’s decision to try to rebuild the network through a fork. CZ, the CEO of Binance believes that this is not the best way to create value for the community that has lost so much in the last few days that other actions are necessary, such as buying assets and burning lots of cryptocurrencies. However, Binance said it wants to support the recovery as much as possible. CZ said the exchange received around $1.5 billion in LUNA. However, for the turnaround plan, the exchange wants developers to prioritize retail investors before thinking about big names, including them.

“To lead by example of PROTECTING USERS, Binance will forego this value and ask that Project Terra compensate retail investors first, Binance last or never.”

Vitalik Buterin, co-founder of Ethereum criticized how UST did not report on the risks of a stablecoin without real backing for the dollar, which should be done. He stated that he strongly supports if LUNA’s idea is to help retail investors first. “I strongly support this. Coordinated sympathy and relief for small UST holders who believed something stupid like ‘20% interest on the dollar’ by some influencer, personal responsibility, and ‘sorry for your loss’ to the wealthy.”

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