- TerraLuna loses its USD peg
- Terra’s chief Do Kwon comes up with the revival plan which gets rejected
- Terraform Labs’ legal team exit the project
The TerraLuna stablecoin is yet to recover from its downfall. Luna which is Terra’s native cryptocurrency has lost all its value as it crashed to zero.
This crash was brought about by the Terra Luna system generating more and more amounts of Lunar tokens surpassing its maximum supply. Its liquidity was excess and as a result, a major sell drove Luna’s price down to zero.
The Binance exchange platform did not hesitate to delist it after de-pegging from the USD. Binance eliminated all the Luna and Terra trading pairs due to its rapid decline in prices.
Following Luna’s depeg the blockchain was halted with claims that the developers needed the halt to come up with a plan to reconstruct it.
A few days later the Binance exchange platform restored the stablecoin trading pairs. However, things have not been smooth for Terra Luna.
The crypto market has been experiencing a severe crash. However, there is some relief after the king coin has recovered by more than 10%. Other top 10 altcoins also show a sign of relief apart from TerraLuna.
Reviving The TerraLuna Ecosystem
Do Kwon, Terra’s Chief proposed the Hand fork plan which involves splitting the old Terra blockchain twice. The initial blockchain will use Terra classic as the new block will use Terra Luna.
Do Kwon’s proposal also involves an airdrop of 1billion new tokens that will be distributed to bring back TerraLuna to its ground. Kwon suggested that a quarter of the new coin will be distributed to a community pool on the new blockchain, 35% will go to the users’ wallets, 10% to holders who will be at the launching of the new blockchain, 5% to developers of the blockchain, 25% to UST holders.
Do Kwon’s Proposal for Revival Rejected
The proposal was rejected by the community as many members did not agree with the distribution of the new tokens to key builders and the initial wallet users of The TerraLuna coins.
1.9% of preliminary voters on the forum where Do Kwon had posted his revival plan, voted against the proposal.
CZ’s Reviews of the TerraLuna Revival Proposal
Founder of Binance, Chanpeng Zhao, through his Twitter account, explained why hard forking of the Terra network will not be a good idea for its evival. He stated that forking was just “wishful thinking” and that “ one cannot avoid all transactions after an old snapshot, both on-chain and off-chain (exchanges).”
TerraLuna’s legal team exits
The legal team at Terraform Labs exited the project. The legal team constituting of March Goldich, the general counsel, Lawrence Florio, the chief corporate counsel, and Noah Axler, the chief litigation and regulatory Council announced that they have slightly left Terraform labs as the legal team. This has made the company seek a counsel for the company’s legal affairs from outside sources
