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The luna price, which was trading a high as $ 100 per luna merely last calendar month, crashed to near zero this week—causing the algorithmic stablecoin UST to completely lose its peg to the U.S. dollar—amid a $ 1 trillion crypto crash that sent the bitcoin price down by over 20 % .
now, the chief administrator of UST and luna developer Terraform Labs, Do Kwon, has pitched a revival plan that could see ownership in the net distributed across UST and luna holders—causing the luna price to surge over 1,000 % as traders bet the visualize could recover .
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The head executive of Terraform Labs Do Kwon pitched a “ revival plan ” for luna and the algorithmic … [ + ] stablecoin UST following the blockchain ecosystem ‘s flop .
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“ While UST has been the central narrative of Terra ’ s growth report over the last year, the Terra ecosystem and its community is what is worth preserving, ” Kwon wrote in a mail on a Terra discussion forum, adding the Terra community “ must reconstitute the chain to preserve the community and the developer ecosystem. ”
The reconstitute—effectively a restart of the terra blockchain—would create 1 billion tokens to be distributed among versatile community stakeholders, with 40 % going to luna holders before the UST de-pegging, 40 % to go to UST holders “ pro-rata at the time of the new net upgrade, ” 10 % to luna holders before the chain freeze, and 10 % to the “ Community Pool to fund future development. ”
The blockchain underpin luna and UST was shut down multiple times this week to “ prevent administration attacks ” following “ dangerous [ luna ] inflation. ”
Terraform Labs and the Luna Foundation Guard, tasked with supporting UST, this workweek printed respective billion luna tokens—increasing the luna provision from 340 million last week to 6.5 trillion—in a fail undertake to maintain the UST peg to the dollar .
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The luna price has fallen by about 100 % over the last week, sparking a bitcoin and crypto crisis .
“ Terra needs a community to continue to grow and make its blockspace valuable again—the entirely way to do this is to make sure that token holders before the attack commenced, the most firm residential district members and builders, stick around to keep providing value, ” Kwon wrote, adding, the ecosystem will not survive “ in its stream state. ”
In a follow-up tweet thread, Kwon said he ‘s “ brokenhearted ” about the break down of luna and UST but said he ‘s confident the “ community will form consensus around the best way forward for itself and find a means to rise again. ”
Others in the crypto community have besides suggested the undertaking could hush survive in some form with Binance head administrator Changpeng Zhao, much known merely as CZ, saying there has been “ build up ” made .
“ Luna blockchain resumed, no more mint, ” CZ posted to Twitter. “ And deposits, withdrawals and trading resumed. trade is important for existing holders. ”
The luna and UST collapse this week came amid a bitcoin, ethereum and wider crypto market downturn that made UST vulnerable, with some speculating there may have been an mastermind attack on the stablecoin .
“ The pullback in general markets created the conditions for an attack on UST, which was inherently flimsy, ” Cory Klippsten, the founder and CEO of bitcoin-buying app Swan Bitcoin, said in a Telegram message, adding, “ the effects of the unwind are wide reach, and the ultimate order of magnitude distillery unknowable. ”
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