Terraform Labs co-founder Do Kwon has tabled a proposal to protect the Terra ecosystem following the historic de-pegging of its algorithmic stablecoin, UST, and the ensuing loss of life spiral that plunged LUNA tokens to virtually zero.
In a Friday publish on Terra’s analysis discussion board, Kwon mentioned, “The Terra neighborhood should reconstitute the chain to protect the neighborhood and the developer ecosystem.” His proposal, which was in response to validator teams discussing the potential of forking the Terra chain, includes compensating UST and LUNA holders who had been unable to promote their holdings throughout this week’s value collapse.
Kwon proposed that validators ought to reset community possession to 1 billion tokens distributed amongst LUNA and UST holders, in addition to a neighborhood pool to fund future improvement. Particularly, 40% of the newly distributed tokens would go towards LUNA holders earlier than the de-pegging occasion; 40% would go in the direction of UST holders on a pro-rata foundation on the time of the brand new community improve; 10% could be allotted to LUNA holders simply earlier than the chain halted operations and the remaining 10% would go towards the event pool.
The story remains to be below improvement.