Terra co-founder and CEO of Terra Labs, Do Kwon, has finally spoken on the crash of its network. He has submitted a proposal on how the embattled Terra ecosystem can be salvaged from its current ruins.
His proposal revolves around reconstituting the chain and resetting the total supply of tokens to 1 billion.
According to him, there are still UST worth billions in circulation even if the value of Luna has fallen to almost zero. With the massive dilution of Luna supply, it’s impossible to build back the confidence.
Do Kwon’s Revival Plan
According to his proposal, the Terra ecosystem and community should be preserved because of the value it has to offer.
“The Terra community must reconstitute the chain to preserve the community and the developer ecosystem,” he said.
Kwon also offered ideas on how to reconstitute the blockchain network, with the central idea being resetting Luna’s supply to 1 billion tokens. He suggested that the new supply should be for Luna holders before the de-peg, UST holders, Luna holders at the chain halt, and the Community pool.
Both UST holders and early Luna holders will get 40% each based on the redistribution formula. While new Luna holders after the de-peg and the Community pool will get 10% each too.
He added that the distribution makes perfect sense because
UST holders need to own a large share of the network, as the network’s debt holders deserve to be compensated for the tokens they have been holding to the end.
There have been several responses to the proposal so far. Most of them are questions about those who hold Luna on centralized exchanges, aUST holders, wLUNA, etc. But some disagree with the redistribution methods.
Terra Founder Saddened by Failed Invention
Do Kwon also expressed his sadness over Terra’s demise on Twitter after what has been a terrible week for the ecosystem.
The acclaimed founder stated that he was saddened by the fact that his invention had brought pain to a lot of people, while also revealing that he made no profit from the situation
In his words,
Neither I nor any institutions that I am affiliated with profited in any way from this incident. I sold no luna nor ust during the crisis.
His tweets however do not sit right with all of Twitter Crypto with some stating that this is just another routine of failed projects – offering thought and prayers after destroying thousands of lives.
The Co-founder of Dogecoin, Billy Markus, advised Do Kwon to leave the crypto industry saying that “ My recommendation is to stop trying to bring in new victims to fund the previous victims and leave the space forever.”
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BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.