The CEO of Terraform Labs and the co-founder of the Terra/LUNA project, Do Kwon, recently took to the public to address the catastrophic fate of UST stablecoin.
In an attempt to address the plight of the investors, he shared a plan to revive the algorithmic stablecoin project called UST that was pegged to Terra’s native currency LUNA token. The declaration was posted on the Terra discussion forum.
The plan talked about the option to restart the Terra blockchain once again. It is worth mentioning that Terraform Labs management recently posted on Twitter that all the activities on the Terra Chain have been halted to contain the governance attack until further notice.
Kwon exclaimed in his recent post that the Terra investors should cooperate and put their faith into making the Terra Chain reboot plan a success.
Kwon talked about a detailed map of the steps that are needed to ensure full recovery of the lost value of the UST and LUNA tokens.
His plan states that upon restarting the Terra Chain a set of 1 billion new tokens will come into existence. Kwon claims that these 1 billion new tokens can be distributed among the various community holders who have lost their savings due to the current de-pegging disaster.
The main idea behind redistribution is to address the issue of massive inflation and volatility of LUNA tokens. The aforementioned volatility is a direct result of the correlation between the UST and the LUNA tokens.
The main reason for the price crash of LUNA is the breaking of the peg in UST reserves and creating a cascading trend that over-took LUNA tokens,
Do Kwon Wants UST Investors to Regroup
Do Kwon is putting his faith in the cooperation of the UST/LUNA investors that would want to come together and make an effort to keep the Terra community alive despite all odds. His redistribution method is aimed at incentivizing the investors into staying and rebuilding the community. His plan distributes the LUNA community into four groups with different tasks.
The first task group contains 40% LUNA investors before UST demise, a second one on 40%UST holders present since the network update, 10% LUNA holders who remained till chain decommissioning, and 10% community pool members to fund the next projects.
Kwon further claimed that he wishes to honor the most loyal community members, investors, and developers who add value to the Terra network. The CEO has chosen however to ignore the questions about his whereabouts on social media forums.