- Terra Founder Do Kwon has been accused of not listening to the community with his proposals to rescue the platform
- Kwon yesterday suggested an Ethereum-style hard fork that would eliminate a stablecoin
- LUNA and UST holders were outraged that their losses would not be honored
Terra founder and world’s most sought after interviewee Do Kwon has been accused of not listening to the Terra community after proposing an Ethereum-style fork that would not allow those who held LUNA through the calamitous drawdown to be made whole. Kwon has been busy trying to resurrect the Terra ecosystem, frantically retweeting messages from dApp builders who publicly stated their desire to keep building on the platform, while the Terra USD fallout continues to ripple through the crypto and mainstream media.
Kwon Puts Forward Second Proposal
Kwon’s first proposal, which was put to the community on Friday, was to redistribute tokens and abandon UST stablecoin, but this didn’t go down well with regular holders, who were upset at the low amounts that they would get back.
This led to Kwon submitting a second proposal similar to Ethereum’s split in 2016, with a fork leading to the creation of a new blockchain and token. The old, broken blockchain and token would be renamed Terra Classic and Luna Classic respectively, whie a new Terra blockchain and Luna token (LUNA) would allow Terra to start again.
Most notably, there will be no stablecoin associated with the fork.
Terra Builders Say Yes, Holders Say No
The new Terra chain would airdrop 1 billion LUNA tokens between developers, UST holders, and those who held or staked Luna or its associated projects before the price of the UST on May 9. While the for idea has gained great support from Terra builders, it has gone down particularly badly with LUNA holders, who accused Kwon of ignoring the wider community:
In this system those ust holders who sell their ust in huge loss… Never come back in crypto industry. I suggest you compensate the ust holders who sell their ust in huge loss ( take a snapshot before de-peg ust).
— NILADRI GHOSH (@NILADRI81605462) May 17, 2022
@stablekwon you aren’t listening to your community. No one wants fork and v2 token. Everyone wants the revive of v1 token and ust. Cuz we are still holding all tokens. And you wants them to even less with the introduction of fork. V2 token will be just another volatile token
— Silkway (@511kwy) May 17, 2022
U guys aren’t listening to the community or as you call them #lunatics…. No one wants a fork. Slowly buyback and burn. If u don’t have money, implement a tax system for every trade. Most $luna investors now are now investors who wanna send it to $1 and won’t mind a tax to help
— Utamadush (@utamadush) May 17, 2022
It seems that the debate over how to rescue the Terra/LUNA disaster will run for some time to come, with no proposal able to satisfy all parties. Kwon’s position is even more tenuous after Terra revealed yesterday that it deployed over 90% of its near $3 billion war chest in order to try and save UST last week but even that wasn’t enough to stop the rats leaving the ship.