Do Kwon, the founder of Terra (LUNA) breaks the silence and proposes a plan for the future

An intervention by Do Kwon that we expected more

Many were waiting for him. Since the start of the long agony of the UST then of the LUNAwhich gradually mutually drawn into an infernal spiralthe Terra community was waiting for a word of Do Kwonthe founder of blockchain.

Indeed, after the UST has started to depeg (lose its flagship value of 1 dollar) on May 9, Do Kwon only intervened on May 10 and 11, first to try to calm the ambient panic a little, then to announce a first solution.

Close to the announcement of a stimulus plan for $UST. hang on “he had tweeted May 10 afternoon, at a time when the UST had depeg 10 cents, touching $0.90, a situation that still looks light today. The LUNA was then still around 30 dollars.

Rebelote the next day, either May 11 in the early morningwith a new message aimed at reassuring his community: “ We’re getting closer… Stay strong, Lunatics. [NDLR, nom donné à la communauté Terra] “. A little later that same day, he makes a long thread to report on the situation and announce possible collateralisation of the UST.

Then, Do Kwon showed up totally absent from radar for almost 3 daysan interminable wait for those who had held on – following his advice – wondering at every moment if the UST was going to go up.

He is finally came back to speak this morningin the night, announcing to have broken heart and stating that he had not benefited financially from the situation.

👉 Related: Why did the UST stablecoin collapse and what is the future of the Terra ecosystem?

Status and future of Terra

The release of Do Kwon is now intended to be a little more pessimistic, and no doubt more appropriate to the reality of the events. At the time of writing, the UST is only worth $0.14 and the LUNA is showing a disastrous $0.00018, which seems unreal in comparison with its ATH (highest price) of 120 dollars at the beginning of April.

I still believe that decentralized economies deserve a decentralized currency – but clearly the UST in its current form will not be that currency. Neither I nor the institutions I am affiliated with benefited from this incident in any way. I did not sell LUNA or UST during the crisis. »

He also announces that the Terra teams will soon develop the way in which the colossal reserve was used of Terra, which was then counted in billions of dollars in order to ensure the peg of the UST:

“We are currently working on documenting the use of Luna Foundation Guard (LFG) bitcoin (BTC) reserves during the depeg phase. Please be patient with us as our teams juggle multiple tasks at the same time. »

In the face of disaster, he proposed a solution on AgoraTerra’s forum dedicated to its evolution, in an attempt to save what’s left of the ecosystem, or at least its fundamental structure.

“What we must seek to preserve now is the community and developers who value Terra’s blockspace – I’m sure our community will form a consensus around the best path forward for themselves, and will find a way to get up. »

The solutions currently being considered

Do Kwon’s proposal, dubbed ” Terra Ecosystem Recovery Plan “, focuses on the community preservationwhich includes developers and users.

“We have built one of the largest and most vibrant developer ecosystems in cryptocurrency, with some of the smartest minds in the world working on products with the best UI/UX. Terra Station has a large install base, with over one million users worldwide. »

Also, the best solution according to the founder would be to perform a fork of the blockchain in order to redistribute network governance via one billion new tokens distributed between:

  • 40%: LUNA holders before depeg begins;
  • 40%: UST holders by calculating a pro rata;
  • 10%: LUNA holders before blockchain shutdown;
  • 10%: Funds dedicated to the future development of the ecosystem.

Thus, Do Kwon wishes to privilege the part of the community who has always supported the ecosystem via LUNA tokens, while rewarding those who bought LUNA during the descent.

In conclusion, although the situation has already been dramatic for many people from a financial point of view, Terra bases may not be abandoned. To be continued.

👉 To dig deeper: LUNA token trading halted on Crypto.com due to pricing error

Sources: CoinGecko, Agora Terra Money

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About the Author : Maximilien Prue

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Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make the blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
All articles by Maximilien Prué.

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