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The price of the luna, which was trading as high as $100 per luna last month, crashed to nearly zero this week — causing the algorithmic stablecoin UST to completely lose its peg to the US dollar — leading to bitcoin. The $1 trillion crypto crash that sent the price down more than 20%.
Now, Doe Kwon, chief executive of UST and Luna developer Terraform Labs, has introduced a revival plan that could see ownership in UST and Luna holders in the distributed network – which could push the price of Luna up more than 1,000% as traders bet. It was thought that the project could be recovered.
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“While UST has been the central narrative of Terra’s growth story over the past year, the Terra ecosystem and its community is one that deserves to be protected,” Kwon wrote in a Post On the Terra discussion forum, adding the Terra community should “restructure the chain to preserve the community and developer ecosystem.”
The restructuring—effectively a restart of the Terra blockchain—will create 1 billion tokens to be distributed among various community stakeholders, with 40% of UST going to Luna holders before de-pegging, 40% to going to UST holders. – Time to upgrade to new networks on Rata, 10% to “Luna holders before the chain halving, and 10% to the community pool to fund future development”.
The blockchain that underpins Luna and UST was shut down several times this week to “prevent governance attacks” after “serious” [luna] inflation.”
Terraform Labs and the Luna Foundation Guard, which backs UST, this week printed several billion Luna tokens — increasing the Luna supply from 340 million to 6.5 trillion last week — in a failed attempt to keep the UST peg in dollars.
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“Terra needs a community to continue to grow and make its blockspace valuable again – the only way to do this is to ensure that the token holders, the most loyal community members and builders, provide value before the attack begins. To be around.” The ecosystem will not survive “in its current state,” Kwon wrote.
in a follow up tweet threadKwon said he is “heartbroken” about the collapse of Luna and UST, but added that he is confident that “the community will come to a consensus on the best path for itself and find a way to rise again.”
Others in the crypto community have also suggested that the project may still survive in some form, with Binance chief executive Changpeng Zhao, often referred to as CZ, saying “progress”. happened.
“Luna Blockchain Resume, No More Mining,” CZ deployment of to Twitter. “And deposits, withdrawals and trading resumed. Trading is important for existing holders.”
The collapse of Luna and UST this week came amid a downturn in Bitcoin, Ethereum and the broader crypto market, which left UST vulnerable, with some speculating that the stablecoin could be a well-planned attack.
Corey Klipston, founder and CEO of bitcoin buying app Swan Bitcoin, said in a Telegram message, “The pullback in general markets created the conditions for an attack on UST, which was inherently fragile.” have a wide reach, and the final magnitude is still unknown.”