The co-founder and CEO of Terra Labs, Do Kwon, has finally spoken out about the crash of his network. He has presented a proposal for how the entangled Terra ecosystem can be saved from its present ruins.
Their proposal revolves around restructuring the chain and resetting the total supply of tokens to 1 billion.
According to him, there are still UST billions in circulation, even after the value of Luna has dropped to almost zero. With the massive dilution of the Luna supply, it is impossible to build trust back.
Do Kwon’s revival plan
According to their proposal, the Terra ecosystem and community should be protected because of the value it has to offer.
“The Terra community must restructure the chain to preserve the community and developer ecosystem,” he said.
Kwon also offered ideas on how to reorganize the blockchain network, with the central idea resetting Luna’s supply to 1 billion tokens. He suggested that the new supply should precede d-peg for Luna holders, UST holders, Luna holders on chain halts, and community pools.
Both UST holders and initial Luna holders will receive 40% each based on the redistribution formula. While new Luna holders will also get 10% each after Day-Peg and Community Pool.
He said that the distribution makes perfect sense because
UST holders need to own a substantial portion of the network, as the debt holders of the network must be compensated for the tokens they hold.
There have been many reactions to this proposal so far. Most of them have questions about people who hold Luna on centralized exchanges, AUST holders, WLUNA, etc., but some disagree with the redistribution method.
Terra founder saddened by failed invention
Du Kwon also expressed grief over the demise of Terra on Twitter after having a terrible week for the ecosystem.
The acclaimed founder said he was saddened by the fact that his invention had caused pain to many, while also revealing that he did not benefit from the situation.
In his words,
Neither I nor any organization I am affiliated with has benefited in any way from this incident. I neither sold Luna nor Ust during the crisis.
Although his tweets don’t all sit right with Twitter crypto, some say it’s just another routine of failed projects – offering thoughts and prayers after thousands of lives were destroyed.
Dogecoin co-founder Billy Marcus advised Do Kwon to leave the crypto industry, saying that “my recommendation is to stop trying to bring in new victims to fund past victims and leave space forever.”
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