After days of silence, Terraform Labs CEO Do Kwon is now visible on Terra governance forum. In the wake of the network’s death spiral, Do Kwon says that the Terra community must “reconstitute” the chain.
- Do Kwon has published a post on Terra’s governance forum presenting a plan to revive the network.
- Kwon suggested issuing 1,000,000 new tokens to Terra community members.
- Kwon didn’t mention the Luna Foundation Guard’s Bitcoin reserve fund. This was emptied as Terra’s UST lost it’s peg to USD.
Kwon suggested that token ownership be reset with a new allocation, 1 billion tokens.
Do Kwon Suggests Reviving Terra
Do Kwon has put forward a plan to revive Terra.
The Terraform Labs CEO resurfaced Friday to share a post on the Terra governance forum, advocating for a plan to “reconstitute the chain to preserve the community and the developer ecosystem.”
In the post, he noted how Terra had established one of crypto’s strongest communities and developer ecosystems “some of the smartest minds in the world.” As such, he said that the network “must reconstitute the chain” and redistribute 1 billion new tokens to the Terra community.
Kwon has suggested allocating 400 million tokens for LUNA holders prior to this week’s depeg event, 400 million to UST holders at the time of the network upgrade, 100 million to LUNA holders at the moment the blockchain was halted, and 100 million to a community pool. He wrote:
Terra needs a community to grow and make its blockspace valuable again.
“Terra needs a community to continue to grow and make its blockspace valuable again–the only way to do this is to make sure that token holders before the attack commenced, the most loyal community members and builders, stick around to keep providing value.”
The update follows days of silence from Kwon amid Terra’s biggest crisis to date. After a string of market sell-offs, Terra’s UST stablecoin fell to $1. This caused a soaring price for LUNA and a disruption of the system. UST and LUNA are in balance. One UST can be redeemed for $1 of LUNA. Due to the coin’s falling peg, UST holders rushed out to get out of their positions and the price fell. While the network was worth $30 billion a week ago, LUNA’s price is now close to zero.
Notably, Kwon neglected to mention the Luna Foundation Guard’s Bitcoin reserve fund. Earlier this week, in response to UST losing its peg, LFG said it was loaning out $750 million worth of Bitcoin and $750 million worth of UST to market makers so that they could help stabilize the price. However, this still leaves many Bitcoin unaccounted. Per the LFG’s own report, its Bitcoin reserves are empty. It currently holds about $70. 57 million in AVAX, $9. 05 million in UST, and $138. 10 in LUNA.
Kwon closed out his post with a promise to the Terra community. He wrote:
“I hope the community can achieve speedy consensus on how to revive the Terra ecosystem. I’ll always be here.”
Editor’s note: This article mistakenly mentioned that Kwon had proposed relaunching LUNA and UST. This article has been corrected to clarify that Kwon suggested distributing one set tokens with a supply of 1,000,000.
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