Community Trust ScoreVerified
Algorithmic stable coins were about to make it to the prime DeFi Space to boom; however, the Terra (LUNA) story has made people stop and check it again. Is it all doomed? Many of them are being skeptical about a future for algorithmic stable coins.
Now the question arises as to how stable the stable coins have to be? It just looks like some stable coins come with their own limitation. Doubts about stable coins are becoming phenomenal after the collapse of Terra (LUNA) on May 12, 2022. When Terra lost its peg to the USD, investors were selling their UST holdings for a run.
Now, it feels like people put too much of their trust into the stable coin very prematurely. The Terra USD experiment has now established that there is a need to have a relook into the concept of stable coins – particularly algorithmic stable coins.
Do Kwon has taken the heat for the failure of the Terra (UST). Grievances, conspiracy theories, questions and proposals are flooding in terms of Terra.
On March 23, 2022, Do Kwon was so confident that he said, “By My Hand DAI will Die” but things have become Topsy-Turvey.
After all the chaos, Do Kwon has been assuring investors that he will be doing all in his might to throw money at the situation. He has been stating that they are planning to announce a recovery plan for UST. He has been requesting the investors to stay strong. Though nothing has materialized so far, Do Kwon stated that they are here to stay, and they are going to continue making the noise.
Do Kwon: Terra governance prop #1623 to rename the existing network Terra Classic, LUNA Classic ($LUNC), and rebirth a new Terra blockchain & LUNA ($LUNA) is now live.
Motivation
While UST has been the central narrative of Terra’s growth story over the last year, the distribution of UST has led to the development of one of the strongest developer ecosystems in crypto.
The Terra ecosystem and its community are worth preserving.
- Terra’s app ecosystem contains hundreds of developers working on everything from Defi to fungible labor markets, state-of-the-art infrastructure and community experience
- Terra Station has a large install base, with million+ users across the world
- Although distressed, strong brand recognition and a name that almost everyone in the world will have heard about
$UST peg failure is Terra’s DAO hack moment – a chance to rise up anew from the ashes.
Summary
- Fork the Terra chain into a new chain without the algorithmic stablecoin. The old chain to be called Terra Classic (token Luna Classic – LUNC), and the new chain to be called Terra (token Luna – LUNA)
- Luna to be airdropped across Luna Classic stakers, Luna Classic holders, residual UST holders, and essential app developers of Terra Classic.
- TFL’s wallet (terra1dp0taj85ruc299rkdvzp4z5pfg6z6swaed74e6) will be removed in the whitelist for the airdrop, making Terra a fully community owned chain
- Allocate a large portion of the token distribution in 1) providing emergency runway for existing Terra dapp developers 2) align interest of devs with the long-term success of the ecosystem
- Network security to be incentivized with token inflation. Target staking rewards of 7% p.a.
