A bit about Do Kwon
Kwon Do-Hyung, better known as Do Kwon, is a South Korean digital currency engineer who helped establish and is CEO of Singapore-based Terraform Labs. Terraform Labs is the unlicensed organization behind the Terra blockchain, which includes the TerraUSD (UST) stablecoin and the Terra (LUNA) network token. Both TerraUSD and Luna crashed in May 2022, liquidating nearly $45 billion of market cap in the span of seven days.
Do Kwon, one of the benefactors of the disrupted Terra Luna blockchain, announced a modified deal on Monday to restore the ecosystem after a combination of critical market uncertainty and inherent convention setup flaws wiped out a large portion of the capitalization. blockchain market. According to Kwon, Terraform Labs will submit another stewardship proposal on May 18 to fork the Terra Luna blockchain into Terra (symbolic name: LUNA).
In any case, TerraUSD (UST) will not be part of the new chain. In the meantime, Terra Classic (LUNC), the old Terra blockchain, will continue to exist alongside UST. When the Kwon deal is approved, the new LUNA blockchain will be available on May 27.
Kwon’s proposal is his second attempt to revive the organization. TerraUSD’s implosion left many of its partners with the money they lost. However, some longtime crypto specialists are skeptical. Zhao Changpeng, CEO of Binance, the world’s largest cryptocurrency exchange, said in a tweet that forks, the duplication of the blockchain that Kwon proposes, “are not good.”
LUNA tokens will be airdropped to LUNC holders, UST holders, and Terra Classic fundamental engineers under the proposal. Additionally, the Terraform Labs wallet with location terra1dp0taj85ruc299rkdvzp4z5pfg6z6swaed74e6 will be de-whitelisted for the airdrop, making Terra a locally owned chain. In the previews of the events in May, the proposed LUNC supply is capped at 1 billion, with 25% to the local area group, 5% to fundamental engineers, and 70% to LUNC and UST holders, subject to the award conditions.
Biosystems administrator Luna Foundation Guard recently revealed that it spent a staggering portion of its digital currency holdings to protect UST’s stake during market auctions. It is unlikely that the Terra biological system will be able to rescue itself without the help of outside capital. Binance CEO Changpeng Zhao said he would support Terra supporters but would like to see more transparency in the context of ongoing events.
“Terra’s environment was perfect in terms of value-based execution, keeping up with low per-trade costs and groups that expanded,” said Min Park, general partner of Lunatic Capital, which puts resources into projects based on Earth. “This [proposal] guarantees the continuation of the works and the progress for now of present and future undertakings. However, we would recommend to our groups that not relying on a biological system would be an incredible method of reducing the risk of fixation.”
Unlike collateralized stablecoins like Tether, UST relied primarily on the calculations and motivations of dealers, like sister coin Luna, to maintain a 1-to-1 stake with the dollar. As the token fell under the radar, its supporters began building a large stash of Bitcoin and other digital currencies as an additional barrier to UST.