Terra Founder Do Kwon Proposes Blockchain Revival Plan

Terraform Labs co-founder Do Kwon has proposed an ‘ecosystem revival plan’ following the collapse of the algorithmic stablecoin UST and its related asset, LUNA. UST Is Not Coming Back, Founder Says In a forum post published Friday, Do Kwon proposed the idea for a restart of the Terra blockchain ecosystem. “The Terra community must reconstitute the chain to preserve the community and the developer ecosystem,” Kwon wrote in the post. Kwon argued that Terra (LUNA) has been diluted to such a degree that its joint ecosystem with TerraUSD (UST) can no longer be rebuilt, even if UST’s peg somehow recovers. “While a decentralized economy does need decentralized money, UST has lost too much trust with its users to play the role.” UST was the former third-largest stablecoin pegged to the US dollar, while LUNA was a governance token that provided support for UST’s peg. Both the coins have collapsed by 84% and 99% this week, respectively. Compensating the Terra Community Kwon, therefore, suggests forking the Terra chain, and resetting network ownership to just 1 billion tokens, down from over 6 trillion LUNA tokens currently in circulation. Specifically, 40% of the newly distributed tokens would go toward LUNA holders who held the asset before the depegging event. While 40% would go towards UST holders on a pro-rata basis at the time of the new network upgrade. Meanwhile, 10% would be allocated to LUNA holders just before the chain halted...