Terra (LUNA) was formerly one of the top ten decentralized finance cryptocurrencies, but it has since lost nearly all of its value and is now worth only a few million dollars. Terra’s market capitalization was $30 billion two weeks ago, but it is now only $922.88 million.
Do Kwon Proposes A Revival Of Terra, Including A Plan To Redistribute Tokens!!!!
Owing to a significant volume of outstanding withdrawal transactions and the underlying LUNA blockchain becoming delayed due to extreme network congestion, Binance, the world’s largest crypto exchange, had to cease trading and withdrawal service for LUNA and UST.
WazirX, an Indian crypto exchange, announced earlier today that it will begin the process of delisting the LUNA/USDT, LUNA/INR, and LUNA/WRX trading pairings. CoinDCX, BuyUcoin, and Unocoin have all stated that they will remove LUNA trading pairs from their platforms.
CoinSwitch has joined the list of companies to delist Luna from its platform, as Indian crypto exchanges face an issue after the cryptocurrency Luna collapsed to practically zero on Friday.
The Terra blockchain’s crypto token became a casualty of the recent drop in the price of major cryptocurrencies.
Meanwhile, The Terra founder has presented a new governance plan to keep the community alive and recompense token holders after two days of silence.
Do Kwon, co-founder of Terraform Labs has proposed a plan to save the Terra ecosystem following the historic de-pegging of its algorithmic stable coin, UST, and the death spiral that sent Terra (LUNA) tokens to near-zero.
“The Terra community must reassemble the chain to maintain the community and the developer ecosystem,” Kwon wrote on Terra’s research forum on Friday.
He offered to reward UST and LUNA holders who were unwilling or unable to sell their shares during the price decline this week in relation to validator groups discussing the possibility of forking the Terra chain.
Validators, according to Kwon’s, “Terra Ecosystem Revival Plan”, should reset network ownership to 1 billion tokens distributed among LUNA and UST holders, as well as a community pool for future development funding.
However, It’s unclear whether the approach will save the blockchain.
Given the massive liquidity events that have occurred across the Terra ecosystem this week, Kwon believes that re-pegging UST to the US dollar would make a little effect.
In other words, confidence in the stable coin model has been severely destroyed.
LUNA’s market valuation peaked at almost $41 billion in early April, while Terra’s UST, which is no longer considered a stable coin, reached about $19 billion. UST fell to a low of roughly $0.13 on Friday after losing parity with the dollar.
Despite the fact that there is no way to entirely recover the blockchain’s value, Kwon believes the redistribution plan should pay the network’s debt holders as well as “committed community members and creators.”
Kwon’s proposal came two days after he presented a plan to save the UST dollar peg, which included doubling the protocol’s minting capacity and raising the special drawing rights pool.
As the price of LUNA and its sister token continued to fall, the plan failed to gain traction among so-called “LUNAtics.