Do Kwon Has a Plan to Save the Terra Blockchain
Unless they have been cut off from all networks for a week, any crypto-investor is aware of the disaster that has affected the Terra (LUNA) project and its stablecoin UST. Salvage proposals for Terra project have multiplied since the start of the LUNA collapse.
Do Kwon, the boss of the Terra blockchain, came out of his silence Monday and tweeted about his plan to rebuild his weakened ecosystem, after the collapse of his algorithmic stablecoin the terra usd (UST) and that of the cryptocurrency luna in a context of severe turbulence in the cryptocurrency market.
Do Kwon has a plan to rebuild the Terra blockchain, in the form of a “fork”. He submitted his proposal to the vote of his community, which will take place on Wednesday.
A New Blockchain Without the UST
Since the collapse of the UST and the cryptocurrency luna, attempts to rescue the Terra blockchain have been futile. In addition, the Luna Foundation, which oversees the Terra blockchain, has seen its cryptocurrency reserves melt away when it was supposed to protect it in the event of a problem with the ecosystem.
In this context, Do Kwon had no choice but to come up with a contingency plan, hence his fork proposal. What Do Kwon proposes is to carry out a “fork” of its blockchain, that is to say a modification of the basic rules which made the essence of this blockchain.
What would such a fork look like? On the one hand, the Terra blockchain will keep the Terra name while the old blockchain will be renamed “Terra Classic”. The two blockchains will be able to coexist. Terra will be developed without the UST and will offer a limited amount of luna cryptocurrency, one billion units.
The fork provides for the redistribution of the luna cryptocurrency to investors and developers who were present before or after the luna collapse, according to a specific distribution plan.
Binance CEO Says Terra Fork Will Be Useless
Binance CEO Changpeng Zhao said via Twitter on Monday that the Terra fork is pointless and won’t create any new value. According to him, the best way to get the UST back on track would be to combine Terra’s Bitcoin (BTC) reserves with the burn of LUNA tokens.