The Terra community has opposed Do Kwon’s second revival plan to force Terra to create two blockchains in an attempt to offset the UST real-time collapse from last week.
The community supports the implementation of an aggressive burning mechanism to revive the once-thriving Terra ecosystem rather than a hard fork. Additionally, most claim that the Terra team is not listening to the community and seems hell-bent on protecting the whales rather than the average smallholder.
The CEO of Terraforms Labs, Do Kwon, is not willing to give up. On Monday he proposed to split the LUNA blockchain into two chains: Terra Classic and Terra. They will host the Luna Classic (LUNC) and Luna (LUNA) cryptocurrencies respectively.
What reported Crypto reported earlier, the new chain would remove the beleaguered UST algorithmic stablecoin altogether and focus on decentralized finance (DeFi) applications. The existing chain would continue as Terra Classic and LUNA holders on this chain would receive an airdrop of the token from the new chain. Notably, Terra will be community owned in the sense that Terraform Labs will not be part of the airdrops.
Although the formal governance vote will begin on May 18, preliminary voting by community members shows that the general sentiment is overwhelmingly against the blockchain fork. The proposal has received more than 2,747 votes in the Terra research and governance forum at press time, with 90% voting against. One community member said, “Nobody wants a fork.” Only 10% have voted in favor of the measure.
Most members of the Terra community are upset with the way the events for LUNA and UST have played out, but believe that creating an entirely new blockchain will only benefit the whales while retail owners get burned. .
The CEO of Binance, Changpeng Zhao, also previously recommended burn and buy back as great ways to save the ecosystem. In CZ’s opinion, “Coining, forking, does not create value. Buy back, burn yes.”
Do Kwon summoned to the South Korean parliament to explain the recent Terra fiasco
Crypto markets have been under pressure this past week following the collapse of TerraUSD. As well as sparking outrage among distraught investors, the dramatic collapse has also seen more governments and lawmakers push for tougher crypto regulations.
And now South Korea’s Conservative Party wants a parliamentary hearing on the Terra debacle, according to a report in a local publication on Tuesday. The Political Affairs Committee of the National Assembly, in particular, requested that Do Kwon be summoned for a hearing.
A spokesperson for the committee, Yoon Chang-Hyeon, raised several questions about the uncoordinated behavior of exchanges during the Terra collapse. For example, Coinone, Korbit, and Gopax discontinued trading of UST and LUNA on May 10, while Bithumb and Upbit did not stop trading until May 11 and 13, respectively.
Without legislation, there is not much the authorities can do at the moment in terms of investor protection. Yoon suggested taking the exchange officials and Kwon to the National Assembly to determine what really caused the drop and come up with corrective measures aimed at protecting investors.
That said, the Terra community faces an uphill battle from here. Whether the historic implosion turns out to be “a chance to rise from the ashes,” as Kwon has previously posited, no one knows.