Do Kwon, the person behind the Terra ecosystem consisting of LUNA and UST, took to Twitter to express his sadness over the demise of his project. In the last few days, the LUNA and UST tokens have come crashing down, and at the time of writing, the price of 1 LUNA is $0.00028 while that of 1 UST is $0.1835.
Do Kwon to move away?
Do Kwon said that in the last few days, he has been “on the phone calling Terra community members – builders, community members, employees, friends, and family, that have been devastated by UST depegging.” He added that UST is not fit to be the decentralized money that decentralized economies deserve in its current form.
1/ I’ve spent the last few days on the phone calling Terra community members – builders, community members, employees, friends and family, that have been devastated by UST depegging.
I am heartbroken about the pain my invention has brought on all of you.
— Do Kwon 🌕 (@stablekwon) May 13, 2022
“Neither I nor any institutions that I am affiliated with profited in any way from this incident. I sold no LUNA nor UST during the crisis,” revealed the founder of the Terra ecosystem.
On the other hand, ex-employees at the Terraform Labs confirm that Do Kwon was responsible for another failed stablecoin which was launched in 2020 just before Terra. It was called Basis Cash (BAC).
“What we should look to preserve now is the community and developers that make Terra’s blockspace valuable – I’m sure our community will form consensus around the best path forward for itself and find a way to rise again,” he added.
With the above tweet, it seems that the creator is leaving everything up to the hands of the Terra community and developers as the “state of the art” ecosystem has fallen apart.
“Terra should first preserve its L1, and the community should gather to discuss decentralized money once the dust has settled,” said the Terra creator regarding the next steps for the project. Do Kwon further added that the validators should reset network ownership to 1 billion tokens and distribute them as follows:
- 400M (40%) to LUNA holders before the depegging event
- 400M (40%) to UST holders pro-rata at the time of the new network upgrade
- 100M (10%) to LUNA holders at the final moment of the chain halt
- 100M (10%) to the Community Pool to fund future development