Categories: Payment system news

Do Kwon Not Giving Up On LUNA Just Yet, Plans Radical Shift To Keep The Terra Ecosystem Alive

  • Terra’s founder has proposed plans for a new blockchain following the tragedy of UST.
  • The new plan involves a network fork that will split the blockchain into two parts.
  • The new blockchain will advance without the UST stablecoin and will prioritize developers.

After the horrific events of the last week following TerraUSD’s (UST) de-pegging from the US dollar, Terra’s founder is not giving up on the project. He proposes a fork to keep the Terra ecosystem alive.

Terra Ecosystem Revival Plan

Do Kwon, the embattled founder of the Terra has proposed yet another plan to keep the Terra blockchain running. Titled the Terra Ecosystem Revival Plan 2, Do Kwon wishes to “fork the Terra chain into a new chain” without the UST stablecoin. According to his plan, the old chain will bear the name ‘Terra Classic’ while the new chain will be christened Terra (LUNA).

Do Kwon argues that “Terra is more than $UST” and is worth saving because of its fast-growing ecosystem. He notes that the ecosystem has hundreds of developers that are working on several interesting projects that could change the shape of DeFi. The large installation numbers and the strong brand behind the Terra name form part of the reason why Do Kwon wants to keep Terra alive.

The revival plan will not have an algorithmic stablecoin going forward and the TFL wallet will be “removed in the whitelist for the airdrop” that will make Terra a community-owned chain. If the proposal scales through, LUNA will be airdropped to stakers and app developers with the latter getting a large chunk of the token distribution.

“We believe this token distribution, in addition to the best efforts of the Luna Foundation Guard (LFG) to make $UST holders whole, best solves for the varying interests and time preferences of each stakeholder group,” Do Kwon wrote.

Stealing A Page From Ethereum’s Book

Do Kwon’s proposal for a fork bears similarities with Ethereum’s fork back in 2017 that led to the creation of two blockchains – Ethereum and Ethereum Classic. At that time the code for the DAO, the premier decentralized organization was hacked with purists deciding to opt for Ethereum Classic and others following the lead of Vitalik Buterin, Ethereum’s co-founder.

“Both chains will coexist,” said Kwon. In his first proposal, the founder still sought to protect the ecosystem by focusing on the redistribution of tokens to developers and other stakeholders with no mention of a fork.

Terra’s ecosystem was shaken to its core after its algorithmic stablecoin, UST de-pegged from the dollar, sending Luna into a death spiral. From highs of $119.18, Luna fell headlong to a low of $0.00001675 within days of the news of UST’s de-pegging.

Terra’s community will decide on May 18 whether or not to proceed with Kwon’s proposal and if the vote scales through, implementation will take place on May 28. “Let’s build it back up again – together,” he implored members of the community meanwhile Dogecoin’s founder, Billy Markus advised Kwon to leave the crypto space entirely.

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