The Terra community has spoken out against Do Kwon’s second plan to split Terra into two blockchains in order to compensate for UST’s real-time collapse last week.
Instead of a hard fork, the community prefers to create an aggressive burning mechanism to restore Terra’s once-thriving ecosystem. Furthermore, many allege that the Terra team is not listening to the community and is only concerned with saving whales rather than ordinary smallholders.
Do Kwon, CEO of Terraforms Labs, isn’t ready to give up. He suggested separating the LUNA blockchain into two chains on Monday: Terra Classic and Terra. They will host the cryptocurrencies Luna Classic (LUNC) and Luna (LUNA), respectively.
The new chain would eliminate the troubled UST algorithmic stablecoin and concentrate on decentralized finance (DeFi) applications. The existing chain would be renamed Terra Classic, and Terra Classic LUNA holders would get an airdrop of the new network’s token.
Although official governance voting will commence on May 18, preliminary community voting suggests that the majority of people are opposed to forking the blockchain. At press time, the proposal had received 2,747 votes on Terra’s research and governance forum, with 90% voting against it. “No one wants a fork,” one community member said. Only 10% of people voted in support of the change.
Most Terra members are unhappy with how the LUNA and UST events unfolded, but they fear that developing a new blockchain will only benefit the whales while normal investors are burned.
Burning and buying back, according to Binance CEO Changpeng Zhao, are wonderful strategies to save the ecosystem. “Minting and forking don’t create value,” CZ believes. “Buying back, buring does
Following the fall of TerraUSD, crypto markets have been under pressure in recent weeks. Apart from infuriating distressed investors, the steep drop has prompted more governments and lawmakers to call for stronger crypto restrictions.
The South Korean Conservative Party now wants a parliamentary inquiry on the Terra disaster. Do Kwon was summoned for a hearing by the National Assembly’s Political Affairs Committee in particular.
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