On Friday, the Terra ecosystem founder and CEO, Do Kwon, released a revival plan for Terra, which included resetting the network ownership to 1 billion tokens and scrapping its UST stable coin design for now.
Panic reigned in the crypto market this week as Terra Protocol failed miserably to stabilize its bleeding cryptocurrency assets in the event that caused its stable coin UST and LUNA to fall to unimaginable levels due to a massive sell-off.
To revive its ecosystem, the infamous TerraForm Labs leader Do Kwon released the revitalization plans to launch a fork of its blockchain to make it whole from its stable coin de-pegging event and plans to distribute one billion token to the stakeholders of its ecosystem.
Kwon intends to save its ecosystem developers, community, and recognizable brands by launching a new Layer 1 blockchain and shelving the idea of a stable coin for some time as UST has already lost community trust.
He stated, “While a decentralized economy does need decentralized money, UST has lost too much trust with its users to play the role. So what remains? While UST has been the central narrative of Terra’s growth story over the last year, the Terra ecosystem and its community is what is worth preserving.”
As part of Kwon’s revival plans, validators are expected to reset network ownership to 1 billion tokens, of which 40% (400 million) will go to LUNA holders before the $1 de-pegging event on Binance, and another 40% to UST holders pro-rata at the time of the new network upgrade.
Also, 10% (100 million) will be distributed to last-minute LUNA marginal buyers for trying to stabilize the network, and the last 10% will go to the community pool to fund its future development.
However, his plans didn’t get encouraging responses, as one might expect from an ecosystem cut at the knees. Many of its investors and prominent figures like DCinvestor took to Twitter asking about the Luna Foundation Guards’ $2 BTC that was supposed to be used to protect UST.
Furthermore, Nic Carter has also condemned Kwon’s failed Bitcoin strategy as a form of blackmail, saying he tried to force crypto communities to support their UST peg.