North Korea is experiencing hardship after the crypto crash wiped off millions from its stash of stolen digital assets. Reuters reported on June 29, citing four digital investigators. According to the investigators, the bear market threatens a key funding source for Pyongyang and its weapons programs. Allegedly, North Korea has invested heavily in sophisticated crypto hacking groups over the years. As a result, the country has become a significant threat, successfully orchestrating multiple high-profile attacks on the crypto space. An…
Kwon unveils another plan to revive ebbing Luna.
On Monday, the Terraform founder and CEO unveiled another plan to save Terra’s sinking ship from extinction. This plan, shared on Twitter, includes forking Terra’s governance coin Luna and making the chain community-owned.
What Went Down, Literally
In spite of the death blow dealt to both Terra coins recently, the cryptocurrencies continue to find ways to stay alive. Last week, Terra’s LUNA dropped from $85 value to less than nothing. Its sister UST routinely depegged from its intended $1 mark, crashing below 15 cents in less than a week.
Many attribute this outcome to an inherent flaw in the supposed stablecoin algorithm. Terra USD was meant to be an algorithmic stablecoin not backed up by the dollar, unlike most stable tokens. Despite high hopes and support from crypto purists regarding Terraform’s plans for UST, the whole plan crumbled.
Undeterred, Do Kwon swiftly proposed a remedial plan which also appears to have thoroughly failed. Luna holders who were aggrieved at Do Kwon’s failed initial plan took to his Twitter thread to accuse the executive of falsely asking them to hold. An even more aggrieved filed a report to the Singaporean Police on behalf of the Over 1000 affected Singaporeans.
Exactly a week after Terra began its fall, its founder Do Kwon is proposing a new strategy to save the ecosystem.
2/ 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.https://t.co/E13VI8bkLh
A thread on our reasoning:
— Do Kwon 🌕 (@stablekwon) May 16, 2022
Details on the New Saving Plan
On Monday, Terraform founder and CEO Do Kwon revealed updated plans to restore Terra to its former glory days. The Korean entrepreneur outlined his new plans as usual in a detailed Twitter thread. Major highlights of the thread are below, with a hard fork the biggest proposal.
- The current Terra Chain will be forked into another chain unconnected to the Terra algorithmic stablecoin UST.
- The old one will exist as Luna classic token, $LUNC.
- There will be an airdrop of the New $LUNA for old stakers, holders and remaining UST owners and app developers.
- Terraform Labs will not partake in this airdrop.
The bottom line of this plan is that there will be a new Terra coin and Terra will become a community-owned chain.
More Details on the Airdrop
The amount of $LUNC proposed for the airdrop is 1 billion. Kwon’s distribution plan allocates 250 million tokens to the community pool. 50 million for essential developers, and the remaining 700 million will go to LUNC and UST holders at different snapshots in May.
For the first time since the unfortunate crash, the Terra community might just be hopeful for a turnaround. Interestingly, Binance’s CEO CZ questioned the viability of a Terra hard fork some days before Do Kwon’s thread.