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The price of Luna, which soared to $100 per Luna last month alone, has plummeted to near zero this week, leaving the algorithmic stablecoin UST not fully pegged to the U.S. dollar amid a trillion-dollar cryptocurrency crash that sent the price of Bitcoin. . reduced by more than 20%.
Now, UST’s CEO and luna developer, Terraform Labs Do Kwon, has announced a revival plan that will see decentralized network ownership for UST and luna holders. cover again
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“Although UST has been the central narrative of Terra’s growth story over the past year, the Terra ecosystem and community is something worth preserving. post In the Terra discussion forum, the Terra community added that “the chain needs to be restructured to preserve the community and developer ecosystem.”
Effectively restarting the Terra blockchain will generate 1 billion tokens and distribute them to various community stakeholders, 40% to Luna holders prior to UST depegging and 40% to UST holders “proportionally new network upgrade time” , 10% to luna holders prior to chain disruption, and 10% to “community pool for future development funds”.
The blockchains backing Luna and UST were shut down several times this week “to prevent governance attacks.” [luna] inflation.”
Terraform Labs, which is responsible for supporting UST, and the Luna Foundation Guard have printed billions of Luna tokens this week in an unsuccessful attempt to peg UST to the dollar.
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“Terra continues to grow and needs a community to make the block space valuable again. The only way to do this is to have token holders, most loyal community members and builders continue to provide value before the attack begins. to make it happen.” Professor Kwon added, “The ecosystem will not survive in its current state.”
in follow-up Tweet threadKwon said the collapse of luna and UST was “heartbreaking”, but he said he is confident that “the community will build a consensus on the best path for themselves and find a way to get it back on track.”
Others in the crypto community have also said there is “going on”, with Binance CEO Changpeng Zhao, often known simply as CZ, suggesting that the project could survive in some form.
CZ, “Luna Blockchain Resume, No More Issues” posting to twitter. “And deposits, withdrawals, and trading resumed. Trading is important to existing holders.”