Luna founder proposes hard fork to correct design flaws in ecosystem
Luna’s founder wants to make changes to the blockchain platform in hopes of correcting possible flaws.
- The Luna token fell to nearly zero in a matter of a week recently, leading to huge losses for investors.
- Not everyone is convinced with
Do Kwon’s proposal.
AdvertisementThe founder of beleaguered blockchain platform, Terra, is not ready to give up on his system just yet. After a rough week, which saw the platform’s Luna token drop to nearly zero in terms of value, Do Kwon, the co-founder of Terra, has proposed a new
In a tweet on May 16, Kwon proposed that the new and updated chain will not be linked to the
“It has been inspiring to partake in the dynamic discourse regarding the best next steps for Terra. Taking feedback from the community and thoughtful proposals, I would like to suggest the following for the path forward,” Kwon said on Twitter.
1/ Terra is more than $UST— Do Kwon (@stablekwon) 1652723303000
What does Kwon propose?
The proposal also provides for Luna tokens to be shipped to LUNC holders, UST holders and developers who are essential to the Terra Classic blockchain. Additionally, the platform will stop whitelisting the Terraform Labs wallet, which used to hold some of the reserves for the chain. Doing so will make Terra a fully community-driven ecosystem, similar to platforms like Ethereum in some ways.
Under Kwon’s proposal, the supply of LUNC will be capped to one billion, and 25% of this will be reserved for the community pool. Another 70% will go to those holding LUNC and UST already, while the remanining 5% will be given to essential developers, at various points in May. The tokens will have vesting conditions attached to them.
Will this be enough to save Terra?
To be sure, it’s not really clear how much, or whether, Kwon’s proposal will really restore the Luna ecosystem. The Luna crypto’s price had fallen from $80 earlier this month to nearly 5 cents last week, and it’s unlikely that it’ll return to that former glory any time soon.
And not everyone is convinced with Kwon’s proposal either. Changpeng Zhao, the chief executive officer of Binance, questioned the idea of passing a hard fork for Terra. “Reducing supply should be done via burn, not fork at an old date, and abandon everyone who tried to rescue the coin. I don’t own any LUNA or UST either. Just commenting,” in a tweet.
This is not Kwon’s first proposal to revive Luna either. On May 14, he had proposed abandoning the UST stablecoin altogether and redistributing the Luna tokens amongst the ecosystem, which was also contested by members of the community.
Luna’s downfall wiped out over $700 billion from the crypto market, and was the result of a wider drop in larger tokens like Bitcoin. However, it has become a cautionary tale for crypto investors about how fast fortunes can change in this volatile market.
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