• Do Kwon’s Terra-Luna Revival Plan Entails Giving Up TerraUSD

  • The CEO of Terraform Labs is seeking to relist LUNA 2.0 while also dealing with a police investigation into the Terra/Luna collapse, which resulted in the TerraUSD stablecoin losing its peg and investors losing millions.

    Terra CEO Do Kwon has contacted five cryptocurrency exchanges in South Korea. Despite the fact that Terra-Luna coins have been prohibited from numerous crypto exchanges, the CEO is planning a resurrection in which the Terra ecosystem would rise from the ashes.

    Do Kwon explained his proposal to relaunch the Terra ecosystem, as well as how new currencies will be distributed to investors that suffered losses, in a message on the Terra research forum:

    “The holders of Luna have so severely been liquidated and diluted that we will lack the ecosystem to build back up from the ashes,”

    “While a decentralised economy does need decentralised money, Terra has lost too much trust with its users to play the role.”

    Do Kwon has proposed resurrecting Terra through a hard fork that will reset the distribution of Luna tokens to 1 billion, redistributing 40 million to holders before Terra was de-pegged, and 40 million to investors who held Terra during the hard fork upgrade.

    When the blockchain was paused on May 25th, 10 million would be distributed to Luna holders, and the remaining 10 million would be used for future development costs.

    Despite the CEO’s disagreements with his community, on May 14, Kwon presented the hard fork technique, which was later altered by Terraform Labs, and the decision was made to establish a totally new Terra blockchain while leaving the old network to be maintained by users.

    On May 25th, local media claimed that Do Kwon had contacted five cryptocurrency exchanges that permitted KRW trading, demanding that the new Luna 2.0 be listed once it goes live.

    Dow Kwon’s vote, which highlighted the ‘Rebirth of Terra Network,’ intends to address the Terra ecosystem’s architectural problems.

    “Let’s call the current Terra blockchain network, Let’s name the existing Terra blockchain network ‘Terra Classic’ and the existing Luna ‘Luna Classic’ and create a new Terra blockchain.”

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