Vitalin Buterin Calls for Relief for UST’s ‘Average Small Holders’

Ethereum co-founder Vitalik Buterin weighed in on the disaster that saw Terra and its algorithmic stablecoin TerraUSD collapse last week. According to him, the Terra (LUNA) project should prioritize small hodlers as part of any proposed reimbursement plan. Vitalik Calls for Prioritizing UST’s Small Hodlers With LUNA and UST investors reeling from substantial losses, the community is now looking at ways to reestablish the ecosystem and potentially offer relief to the many people who gave their everything into the project. One such community proposal includes first reimbursing all of the initial deposits (not yield) of small UST holders. According to the Twitter user, by prioritizing the bottom 99.6%, Terra could afford to return every dollar that was invested by the poorest 99.6%. He argues that his explanation is viable as the ‘VERY’ vast majority of UST is held by regular people in smaller wallets. The second way is to prioritize smaller wallets. People who had a couple thousand or more of UST deposited in Anchor. If Terra just focussed on the "poorest" 99.6% of wallets, then they could make this gigantic group 100% whole. Yes, you read that right! 4/ — PersianCapital 📖 (@PersianCapital) May 13, 2022 Buterin retweeted the Twitter user, saying: “Coordinated sympathy and relief for the average UST smallholder who got told something dumb about ‘20% interest rates on the US dollar’ by an influencer, personal responsibility and [...