Terra's co-founder proposes a token redistribution strategy to help rescue blockchain

Terra's co-founder proposes a token redistribution strategy to help rescue blockchain ...

Terra''s co-founder, Do Kwon, who died this week after the crypto collapse, announced a new plan to resuscitate the infamous$30 billionblockchain network, which has seen its algorithmic stablecoin UST depeg and LUNA token crater. Kwon said he wanted to offer a financial program to help cryptocurrency holders.

Kwon infamously stated that 95 percent of [of coins] will die, but there''s also entertainment in surviving businesses.

"Tear the peg would eventually turn up after the last marginal buyers and sellers capitulated, the holders of Luna have so much been liquidated and diluted that we will not be able to rebuild from the ashes," said Kwon. "While a decentralized economy does not require decentralized money, UST has lost too much trust with its users to play the role."

Kwon proposes a redistribution scheme that would reduce the number of LUNA governance tokens to 1 billion from6.5 trillion tokens. He claims that another 40% would be awarded to UST holders before it was de-pegged. Another 10% would go to LUNA holders, while the remaining 10% would fund the continued development of the network.

Globally, there are over 100 stablecoins, most often tied to a more stable asset like the US dollar. UST and its sister token LUNA have dropped dramatically in price, with LUNA going from$100 in April to a jaw-dropping price of $0.0001 on Friday, making it virtually worthless.

UST and LUNA are sister tokens designed to work together via financial engineering that ensures stability through an algorithm. Essentially, if the price of one falls below $1, the sister token would stabilize the other by permitting users to swap one for the other. This also diverges from the normal way stablecoins work, given that it is not tied to the US dollar or gold.

The de-pegging of the UST stablecoin and the string of chaos for LUNA, which reached an astonishingly low price bordering on zero this week, have impacted collateral like Bitcoin. Kwon acknowledged investors'' losses but said he is optimistic about reaching a rapid consensus on how to revitalize the Terra ecosystem. I''ll always be here."

"We have established one of the world''s largest and most effective developer ecosystems in crypto," Kwon said. Developer teams are also speeding down to competing networks, owing to Terra''s bloodshed.

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