Terra CEO Reiterates His Intention to Make Investors Whole Again, Says He Won’t Abandon Them.
“Terra is more than $UST. The Terra community is my family. I will always be here, no matter how hard it gets. Let’s build it back up again – together.”
1/ Terra is more than $UST
— Do Kwon ? (@stablekwon) May 16, 2022
12/ The Terra community is my family.
I will always be here, no matter how hard it gets.
Let's build it back up again – together.
— Do Kwon ? (@stablekwon) May 16, 2022
The Terra CEO is still not prepared to let go as he suggests a new revival plan to make investors whole again.
Despite the massive plunge in Terra’s native cryptocurrencies TerraUSD (UST) and Terra (LUNA), Do Kwon, the CEO and founder of TerraForm Labs, has reiterated his dedication to making investors in these digital currencies whole again.
Kwon noted how inspiring it has been for him to see how committed the Terra community has been in proffering solutions to revive the ecosystem tokens from the dust, noting that the team has made a decision on how best to go back to its glory days.
Terra’s Revival Strategy
In a Twitter thread, Kwon proposed that the Terra chain be forked, which would see the ecosystem have two chains – Terra Classic (LUNAC) and Terra (LUNA). The Terra Classic chain is the existing and current network, while the Terra will be the new chain.
While both chains will coexist, Kwon noted that the old tokens will be renamed LUNAC while the new ones will be called LUNA.
The launch of the new chain will require Terra developers to airdrop new LUNA tokens to holders of the old LUNA (LUNAC) and UST, as well as developers once the plan is implemented, Kwon said.
Furthermore, Kwon noted that the plan will also require the team to remove the TerraForm Labs wallet from the airdrop.
“We believe this token distribution, in addition to best efforts by LFG to make $UST holders whole, best solves for the varying interests and time preferences for each stakeholder group, and most importantly, creates the most viable path to revive the Terra ecosystem,” Kwon added.
8/ We believe this token distribution, in addition to best efforts by LFG to make $UST holders whole, best solves for the varying interests and time preferences for each stakeholder group, and most important, creates the most viable path to revive the Terra ecosystem.
— Do Kwon ? (@stablekwon) May 16, 2022
According to Kwon, the upgraded Terra ecosystem will be focused on developers, and as such special funds in LUNA tokens will be allocated to them to get things started.
Notably, a governance proposal will be made by the TerraForm Labs today and once it passes, the fork with validators will be coordinated by May 27, 2022.
This comes after Terra’s stable coin lost its peg to the dollar, thus causing its price including LUNA to crash significantly.
LUNA which traded above $125 last month is down to $0.00017818, while UST is down from $1 to $0.099.
While the team noted that it did not sell LUNA and UST during the crisis, it recently disclosed that it made use of part of its BTC holdings to save its ecosystem tokens from crashing.
LFG Sinks 80K BTC in Desperate Attempt at Reviving UST
The Luna Foundation Guard (LFG) claims it sunk 80 thousand Bitcoins (BTC) in desperate efforts to save its TerraUSD (UST). Consequently, LFG’s BTC reserves have whittled down to 313 coins.
The foundation provided an explanation following an uproar from its customers on how it handled the debacle. In a series of tweets, LFG showed how it allocated funds from its reserve to shore up the sinking UST.
Accounting for 80K BTC
LFG began by revealing its assets in its reserve as of 7th May. It disclosed that it held 80,394 BTC, 39 914 BNB, and about 26.3M USDT. Additionally, it had nearly 23.6M USDC and 1.97M AVAX. Some 697K UST and roughly 1.7M LUNA were top-up in that reserve.
The foundation says it started converting its reserve assets to UST when crypto started dipping below a dollar. It says it traded some 50K BTC with a counterparty on May 8th. Again, they sold some additional 30K BTC in the last gasp effort to secure the peg.
How Did LFG Get Here?
Last week the $40B Terra Ecosystem crashed following UST dropping from a dollar to below 20 cents. Further, its LUNA token that’s designed to absorb shocks nosedive from $80 to under two cents.
According to Larry Cemik, VP of research at the Block, LFG’s reserves have plummeted from $3.1B to about $87M. He tweeted that Terra spent about $3B trying to anchor the stablecoin to no avail.
What’s Next for UST Holders?
LFG says it has some reserves, including the 313BTC and several other altcoins totaling $80 million. It adds that it’ll return all the assets to the wallets tagged in dashboard.lfg.org shortly. Additionally, it’s unbinding the staked LUNA and will reimburse it within twenty days.
It also affirms its commitment to compensating UST users for their losses. For that, it’ll use its remaining assets and will start with those with smallholdings.
The foundation refuted allegations that it had used its BTC reserves to bail out crypto whales. In a Twitter response to that suggestion, LFG insists that it didn’t strike a deal with its insiders to quit. Instead, it holds that it used the funds to purposely help secure UST’s peg.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
-Advertisement-
