Do Kwon, co-founder and CEO of Terraform Labs, broke his social media silence early Friday evening with a series of tweets promoting Terra’s LUNA token and accompanying stablecoin, UST.
Terra co-creator Do Kwon reappeared on Friday after a brief absence from Twitter and social media to offer a “ecosystem revival plan” for the network.
He claims that UST will not return, and that the Terra blockchain will need to disperse tokens in order to continue forward.
Do Kwon said:
“I still believe that decentralized economies deserve decentralized money – but it is clear that $UST in its current form will not be that money.”
The statements came just hours after Kwon proposed, via a Terra discussion site, to essentially restart the network by distributing 1 billion tokens to affected holders and users.
Kwon proposes resetting the distribution of the network’s LUNA governance tokens to 1 billion in order to “preserve the community and the developer ecosystem,” with 40% of those tokens being reallocated to holders before Terra’s UST stablecoin became de-pegged from the US dollar over the weekend.
Those who own UST at the time of the update will receive an additional 40%. When the blockchain was stopped for the second time in 24 hours today, LUNA investors would receive an additional 10%. The remaining 10% would be utilized to fund network development in the future.
The combined meltdown of the algorithmic stablecoin UST and Terra’s native LUNA asset resulted in significant losses for those exposed to the market, as CoinCu News reported last week. As the circulating amount of LUNA increased, the accompanying turmoil resulted in blockchain outages and market trading halts.
Terra developers stated earlier Friday that a post-mortem report describing the events of the previous week was being put together. “The strength of the #LUNAtics has been amazing. More to come,” that post said.
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