Do Kwon wants to save Terra by creating a new chain with 1B tokens for LUNA and UST holders – The Defiant
The infamous leader of the Terra Ecosystem is trying to recover the wealth and talent left behind by the wreckage of the UST.
Do Kwon, the notorious founder and CEO of Terraform Labs, has posted a plan to fork the Terra blockchain and distribute 1B of a new token to Terra ecosystem stakeholders. Holding on to the idea of creating a decentralized stablecoin for the time being, Kwon proposes to save Terra developer ecosystem, users and recognized brands by launching a new Layer 1 blockchain.
“Although a decentralized economy requires decentralized funding, the UST has lost much of its credibility with its users to play a role,” Kwon wrote. “So what’s left? Although the US has been the central narrator of Terra’s growth story for the past year, Terra’s ecosystem and its communities deserve to be preserved.”
Token distribution
Under Kwon’s plan, 40% will go to LUNA holders before the debugging event and 10% to LUNA holders “at the final moment of the chain holt”. A further 40% of the proposed token will be pro-rata to US Stablecoin holders “during the new network upgrade”. The final 10% will go to a community pool to finance future development.
“Terra needs a community that continues to grow and reclaim its blockspace,” Kwon wrote. “The only way to do this is to make sure the token holders, the most loyal community members and creators, stick around to continue paying the price before the attack starts.”
Native-tokens of the new Terra blockchain will be stacked, with a “reasonable” inflation rate of around 7% to encourage network participation, Kwon proposed.
The reception for his plan has been reduced, as can be expected from an ecosystem that has cut to his knees.
BTC Reserve of Luna Foundation
A key question remains what happened to the Luna Foundation Guard’s (LFG’s) BTC that was used as a backstop for the UST.
One of the most liked comments on the offer came from a user named Fatman Online, who asked, “Most importantly: where are the LFG bitcoins? How much is left? What happened to the market maker’s loan agreement?”
Other prominent names such as DC Investor And Ryan Selkis, founder of Mesari, has joined the chorus to find out LFG’s BTC information.
LFG was established in January with a basic mandate to support the Terra ecosystem. In March, the company sold LUNA tokens for TC 1B of BTC, which were supposed to be used as a backstop for UST by buying stablecoins when the peg went down.
LFG continued to buy BTC, reaching a total value of $ 3.5 billion on May 5, according to a press release, which also stated that the organization was among the top 10 holders of digital assets at the time.
The wallet address is LFG Last posted May 9 is empty.
“Similar to the last installation, it was lent to market makers,” the company said of the “final clip” of 37,000 BTC. Institution Post On May 8, it lent BTC $ 750M to protect Peg, but details about the loan and BTC’s “last clip” are scarce, leading to current skepticism.
More questions
The other common question in the revival plan is about the people who held the LUNA in the CEXs – the basic problem is that the CEXs have to be responsible for redistributing new tokens to their users because Terra probably doesn’t have access to the people’s wallet addresses.
And yet other users argue that the proposed distribution favors people who supported the ecosystem before UST debugging, rather than those who bought later in support of the ecosystem.
After all, there’s not much willingness to move closer – when Kwon says the developing ecosystem deserves to be supported (probably because manufacturers hold significant amounts of LUNA and UST), it’s not clear if there will be any demand for another chain, especially at its core without a stablecoin. .
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