- CZ has expressed concern over the proposal to fork the Terra chain to create new LUNA and UST digital assets.
- Binance CEO said that the new fork has no value and cannot invalidate all transactions since the old snapshot, especially on crypto exchanges.
- He also asked where all the Bitcoin holdings owned by the Luna Foundation Guard went.
- Kwon Do has previously mentioned that the Terra team is editing a document to explain the flow of Bitcoin in LFG.
Binance Founder and CEO Changpeng Zhao has expressed concern over the proposal to fork the Terra Blockchain as a means of addressing the massive defragmentation of UST and subsequent inflation of LUNA.
According to CZ, this move does not add value to the new fork and is a ‘wish thought’. CZ also pointed out that it is not possible to simply invalidate all transactions on the blockchain since the old snapshot, especially those on crypto exchanges.
This is my personal opinion. NFA.
It doesn’t work.
– Branches do not provide values for new branches. That’s a hopeful idea.
– It is not possible to invalidate all transactions since the old snapshot, both on-chain and off-chain (exchanges).
Where is all the BTC that should have been used as a reserve? https://t.co/9pvLOTlCYf
— CZ 🔶 Binance (@cz_binance) May 14, 2022
LUNA Chain Fork and New Digital Asset Issuance Proposal
Zhao shared his insights on the situation via Twitter and was part of a response to another tweet suggesting that the Terra blockchain’s final solution would be:
- Performing a Terra Blockchain Hard Fork on Terra2
- Taking a snapshot of all holdings before the UST collapsed
- Issuing new LUNA2 digital assets to affected holders
- Create new and better chains with LUNA2 and UST2 digital assets.
- Create a pool to redeem existing UST pegs
CZ question where LFG’s Bitcoin went
Aside from pointing out that hard forking the Luna blockchain is not a good idea, CZ also asked where the Luna Foundation Guard’s bitcoin went while depegging the UST. According to CZ, Bitcoin should have been used to buy back UST first. He also issued a disclaimer that he is not a current or past holder of UST.
Where is all the BTC that should have been used as a reserve?
Shouldn’t that BTC be used to buy back UST first?
I do not hold UST. And I don’t know either. I’m usually busy with other things, but now I’m preoccupied with this.
[Feature image courtesy of CZ on Twitter]