Do Kwon Has Proposed The Revival Of Terra

Terra
Terra

Do Kwon, the co-founder of Terraform Labs, has put forward a proposal that would preserve the ecosystem of Terra. This seems to be the need of the hour- considering the historic depegging of its stablecoin- the UST- which also resulted in the death of the Terra tokens to zero.

In a post on Friday about the research forum of Terra, Kwon went on to state that the community of Terra would definitely reconstitute the chain in order to preserve the community as well as the developer ecosystem. His proposal, which was a direct response to most of the validator groups which discussed the possibility of forking the chain of Terra- did involve compensating LUNA and UST holders who were quite unwilling to sell their holdings. 

Do Kwon Has Interesting Proposal For Terra

Do Kwon went on to propose that the validators definitely should have reset their network ownership to 1 billion tokens which would then be distributed among the holders of UST and LUNA, along with a community pool that would fund most of the future development? Specifically, close to 40% of the newly distributed tokens should go toward the holders of LUNA who had held on to the asset before the de-pegging event. 40% would be going towards the holders of UST on a pro-rata basis at the time of the network upgrade. 

With respect to the chances of UST ever getting repegged to the USD, Do Kwon mentioned that it was pretty likely that it wouldn’t be making a big difference- with the mass liquidity events spread throughout the entire ecosystem of Terra. To put it simply, the trust in the model of stablecoin had been eroded permanently.

Although there is no stable way of fully restoring the value of this blockchain, Do Kwon did state that the redistribution plan was to compensate the debt holders of the network- and most of the loyal community members and builders. 

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