Hours After The Terra Blockchain Resurrected, Terra Founder Dokwon suggested a revival plan to dissolve Terra’s property. Terra’s founder stated that protecting Terra’s ecosystem was the first step to resettle its ownership.
A call to action
While several community and validator groups discussed how to make Terra’s blockchain valuable again, Dokwon shared his outlook on viable measures that could be applied, for Terra’s recovery after the UST-de-pegging event.
Dokwon noted that there are still several billion dollars worth of UST and Luna’s devastation to recover from. He admitted that the heavy liquidation of Luna will not save the capitulation, even if the link were restored.
In addition, Terra’s ecosystem is not strong enough to build the market cap of both stablecoins and the trust of many users has been violated. Therefore, the most practical action for him would be to provide a sustainable structure to preserve the developer ecosystem and its community, which would be to reshape the chain.
Achieving redistribution in Terra’s network
In summary, validators would have to reprogram network ownership up to $1 billion, which would be distributed among the parties involved. For recipients who held Luna prior to the de-pegging, $400 million (40%) should be allocated to them. Dokwon believes it is critical to maintain fair ownership of the network in the hands of the strongest believers and builders, which is why the new chain deserves community ownership.
The same amount (40%) should also be provided to: UST holders who were prorated at the time of the new network upgrade, while $100 million (10%) should be given to Luna holders who persisted until the last minute of the chain shutdown.
Similarly, the community pool should be allocated $100 million (10%) to fund future developments. Next, all Luna, except the third installment, must be deployed at the network healing rate.
Finally, he suggested that reasonable incentives should be provided for collateral as the fees are no longer sufficient for collateral without the swap fees.
With this system in place, Terra perhaps be able to successfully redistribute its value across its ecosystem, at the same time amplifying its value, and slowly contribute to the pursuit of a decentralized economy.
Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously, he was a co-founder of Govt. of India supported startup InThinks and is currently editor-in-chief at Coingape and CEO at SquadX, a fintech startup. He has published over 100 articles on cryptocurrency and blockchain and has assisted a number of ICOs in their success. He co-designed an industry training for blockchain development and has conducted many interviews in the past. Follow him on Twitter @sharmasunil8114 and contact him at sunil (at) coingape.com
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This post Terra founder proposes to reset Terra’s ownership to 1 billion tokens
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