Do Kwon Announces Revival Plan
Do Kwon isn’t ready to give up just yet.
In his announcement, Kwon announced plans to pivot from focusing on the failing TerraUSD stablecoin (UST) to promoting development within Terra’s overall development ecosystem.
“The Terra ecosystem and its community are worth preserving,” Kwon wrote, adding that “Terra is more than $UST.”
Terra will be split into Terra Classic (and Terra) under the new plan. These chains will house the cryptocurrencies Luna (LUNA), and Luna Classic (LUNC). Only the classic chain will be able to host the algorithmic stablecoin, TerraUSD.
New LUNA tokens will be airdropped to LUNC holders and stakers, residual UST holders, and essential app developers. Terra will be a community-owned network due to the fact Terraform Labs won’t be included in airdrops.
Based on the proposal, a governance vote is scheduled for May 18. The new chain could launch by May 27, if it succeeds.
Although there are no statistics on the number of stakeholders who support the proposal, comments indicate that many are critical of it and that many support an earlier plan with a token burning.
Kwon compared TerraUSD’s failure to Ethereum’s DAO hack, calling the opportunity a “chance to rise up anew from the ashes.” That hack similarly led Ethereum to split into Ethereum Classic in 2016.
Terra lost its peg one week ago
On Sunday, May 8, TerraUSD stablecoin (UST), began to lose its $1.00 target. On May 9, the asset’s peg with USD fell further, as its price dropped below $0.95.
Various actions to protect the coin’s value were taken in the meantime. On May 9, the Luna Foundation Guard announced it would deploy $1.5 billion to preserve the stablecoin’s value.
On May 12, the project announced its emergency plans, which included coin burnings. Kwon revealed other plans to revive network on Friday, May 13. These included issuing tokens.
The Luna Foundation Guard made plans to launch a new program earlier today. compensateUST users pay out first to the smallest holders. This group is still looking for compensation methods.
While not all of the above plans have been fully enacted, those that have been carried out have not succeeded in raising the stablecoin’s price. Currently, UST has a value of $0.10.