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Do Kwon proposes revitalization plan for Terra ecosystem

Terra co-founder Do Kwon has unveiled a plan for reviving the Terra community that includes the full abandonment of the USTstablecoin will include. Instead, he suggests that validators reset network ownership under a new token by forking and redistributing the chain to fairly compensate all harmed parties.

UST has failed, says Do Kwon

In a forum post on Friday, Kwon argued that Terra (LUNA) has been diluted to such an extent that its shared ecosystem with TerraUSD (UST) can no longer be rebuilt – even if UST’s bond somehow recovers.

UST was the former third-largest stablecoin pegged to the US dollar, while LUNA was a governance token that supported UST’s peg. Each coin is down 84% and 99% respectively this week.

The co-founder claims the collapse so thoroughly shattered trust in UST that it can no longer serve as the “decentralized money” that was hoped for.

our recommendation Do Kwon proposes revitalization plan for Terra ecosystem, Crypto Trading News

“While UST has been the central narrative of Terra’s growth story over the past year, the Terra ecosystem and its community is what is worth preserving,” Kwon wrote.

Therefore, the creator proposes to fork the chain and reset the network’s ownership to just 1 billion tokens – out of over 6 trillion LUNA tokens currently in circulation.

Compensation of the Terra community

In particular, 400 million of the Terra-fork distributed to previous LUNA holders at the time UST first unbound this month. This won’t include Terraform Labs, however, as Kwon intends the new chain to be “community-owned.”

Another 400 million tokens will be shared with UST holders at the time of the upgrade to make them complete for holding Terra’s debt.

The next 100 million goes to the last LUNA holders before the Terra chain stopped, with the last 10% dedicated to the community pool.

Kwon claims that the Terra community will find another way to implement “decentralized money” to replace UST in the future.

“I hope that the community can quickly reach a consensus on how to revitalize the Terra ecosystem,” he concluded. “I will always be here.”

The plans outlined represent a clear reversal of Kwon’s original UST recovery plan, which included an increase in the UST burn rate.

Source: Crypto News Deutsch

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