The inability to make Terra investors whole is likely to undermine Terraform Labs PTE Ltd.’s latest proposal to undo the damage from a run on TerraUSD (UST), the algorithmic stablecoin project backed by the Singapore-based firm, experts told Forkast.
As part of Terraform Labs chief executive officer Do Kwon’s proposal to create a new blockchain on the Terra network without the algorithmic stablecoin, the old Terra and Luna will be called Terra Classic (USTC) and Luna Classic (LUNC) respectively. Kwon promised to airdrop 1 billion new LUNA tokens to existing holders of UST.
The new blockchain’s native staking token, LUNA, will be airdropped across LUNC stakers, LUNC holders, residual UST holders, and essential app developers of Terra Classic. The distribution of the new tokens distributed will be determined by the types of tokens, quantity, and the amount of time they were held on the Terra Classic chain before and after the “attack,” the proposal said.
Once bitten
“As long as the last developer is writing code on Terra, I will be holding it together,” Kwon said on Twitter, repeatedly assuring his commitment to rebuild the network and Terra community.
“As a community, we said we would rise from the ashes,” the verified Twitter handle of the Terra community said. “Tomorrow, one of the most decentralized and community-owned blockchains ever will launch as a result.”
But that is easier said than done, experts that Forkast spoke to said.
See related…
