Friday, June 9, 2023

Do Kwon Reveals Plans to Revive Terra


The exchange’s LUNA hoard, which soared over $1.6 billion at one time, has not been sold, according to CEO Changpeng Zhao.

Terra’s cataclysmic collapse has left a sour taste in the mouths of token holders. This list includes Binance, the world’s largest cryptocurrency exchange by trading volume.

Meanwhile, Do Kwon, CEO of Terraform Labs, has devised yet another way to save the Terra environment, which he says is “greater than UST.”

15M LUNA Never Sold                                   

Binance made a $3 million investment in the Terra ecosystem in exchange for 15 million LUNA tokens in 2018. Zhao said that as LUNA reached new highs, that investment grew to $1.6 billion.

This hoard is only worth roughly $2,400 due to the spectacular fall of LUNA and its companion cryptocurrency TerraUSD (UST) stablecoin last week. Zhao describes it as not much. These tokens are still held in the wallet to which they were deposited, according to CZ, because they were “never moved or sold.”

Despite the significant losses, Zhao claims that Binance will ask the Terra team to reimburse ordinary traders first. Those who dealt a major blow to the exchange after the price collapsed last week before reimbursing it.

On Monday, the CEO sent out a tweet. Binance will let this go to set an example for user protection, according to him. He will then request that the Terra project team reward retail consumers first, and Binance users last, if at all possible.

Binance, on the other hand, collected $12 million in UST in staking incentives from LUNA tokens. This is the July 2021 staked exchange. This was not sold or transferred as well.

CZ also confirmed that Binance has previously discussed investing millions in LUNA in the most recent financing round. The agreement, however, fell through.

Meanwhile, the Luna Foundation Guard, a non-profit dedicated to advancing the Terra ecosystem, sold 80,081BTC. It accounted for 99.61 percent of all bitcoin reserves. This was sold in order to pay the remaining UST users that were affected. The goal is to recompense those who have the fewest assets.

CZ Plans to Fork LUNA in Revival Plan 2

Terra supporters’ loyalty was put to the test last Monday when the UST stablecoin began de-pegging. To make UST and LUNA work together, the mint-and-burn procedure and arbitrage were developed. When the price of UST hits $1, the Terra protocol encourages users to burn LUNA and mint UST. When the UST stablecoin falls below $1, users are encouraged to burn UST and manufacture LUNA.

However, this strategy backfired, and the stablecoin lost its dollar peg unexpectedly. Following that, LUNA slid into a death spiral, losing nearly all of its value, and investors were left devastated.

Terraform Labs CEO Do Kwon has recommended breaking the LUNA blockchain in two. It is a branch from the original Ethereum network in the style of Ethereum Classic. The new chain will be called Terra (token name: LUNA), whereas the previous, troubled network will be called Terra Classic. The latter will employ the Luna Classic (LUNC) token, which will remain linked to the UST stablecoin.

The algorithmic stablecoin will not be part of the new chain, which Kwon claims would be totally community-owned.

The Terra Classic chain’s LUNA holders, as well as any remaining UST holders, will receive an airdrop of the new network’s tokens. As a result, holders of UST and LUNA can now choose whether to stay on the present chain or start afresh.

Beginning on May 18, the updated proposal will be voted on. Kwon asserts that if the bill is passed, the new blockchain will be functioning by May 27.

Rainy Naidoo
Rainy Naidoo
Rainy Naidoo is a writer for Cryptoconstellation. She has her Degree in Journalism and communications. Rainy Likes to spend her free time reading and exploring new places.

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