Do Kwon, co-founder of Terra, has revealed a plan to resurrect the Terra community, which includes completely ditching the UST stablecoin. Instead, he proposes that validators fork the chain and distribute a new token to appropriately recompense all affected parties.
Kwon said in a forum post on Friday that Terra (LUNA) has been diluted to the point that its ecosystem with TerraUSD (UST) can no longer be restored – even if UST’s peg recovers.
UST was the third-largest stablecoin linked to the US dollar at the time, while LUNA was a governance token that supported the peg. This week, the value of each coin has dropped by 84 percent and 99 percent, respectively.
The collapse, according to the co-founder, has completely shattered trust in UST, rendering it useless as the “decentralised money” they planned for. As a result, the author suggests forking the chain and resetting network ownership to just 1 billion LUNA tokens, down from the current 6 trillion.
Specifically, 400 million Terra fork tokens will be issued to previous LUNA holders at the time UST de-pegged earlier this month. Terraform Labs will be excluded from this, as Kwon wants the new chain to be “community-owned.”
At the time of the upgrade, another 400 million tokens will be distributed to UST holders to compensate them for holding Terra’s debt. The next $100 million will go to the last holders of LUNA before the Terra chain was shut down, with the remaining 10% going to the communal pool.
Kwon believes that the Terran community will find a means to replace UST with “decentralised money” in the future.
Read more: Terra’s co-founder, Do Kwon, reveals additional purchase of Bitcoin worth $100 million
