After two grueling weeks for the Terra community, the team behind the project announced revisions to their proposed reactivation plan for Terra (LUNA) and TerraUSD (UST).
In a Tweet, Terra shared three major revisions to the proposed Terra revival and redeployment plan. These include increasing genesis liquidity, introducing a new liquidity profile for pre-attack LUNA holders, and decreasing distribution to post-attack UST holders.
1/ We have published an amendment to Proposition 1623, incorporating community feedback since its publication 2 days ago. See below for more details https://t.co/liISBn3Baa
— Terra Developed by LUNA (@terra_money) May 20, 2022
The announcement noted that Anchor UST (aUST) holders before the attack, LUNA holders after the attack, and the initial liquidity parameters of UST holders after the attack were changed. The change will be 15% to 30%, and according to Terra, this can “mitigate future inflationary pressures” and increase the supply of the token during the launch.
Other than this, wallets holding less than 10,000 LUNA will get the same liquidity as the aforementioned pools. Also, 70% of your MOON will be invested in two years, with a six-month cliff. Terra said that he believes this new liquidity profile will ensure that small token holders have similar initial liquidity.
Lastly, the allowance for post-attack UST holders decreased from 20% to 15%. According to Terra, this “dpeg-related allocation is on par with the original stakeholder allocation (pre-attack $LUNA).” 5% will be transferred to the community pool.
Related: Terra Fallout: Stablegains Lawsuit, Hashed Loses Billions, Wrong Finder & More
The fallout from the collapse of the UST gave the community reason to doubt the future of algorithmic stablecoins. According to university assistant professor Ryan Clements, purely algorithmic stablecoins are “inherently fragile” and rely on many assumptions, which are neither safe nor guaranteed, to be stable.
Meanwhile, while some are using the collapse of the UST to criticize the entire industry, some have tried to defend cryptocurrencies. In an interview with Cointelegraph, Huobi Global co-founder Jun Du said that “one bad apple in the short term will not affect [the] long-term demand for crypto.”
This post Terra’s modified reactivation plan would decrease allocation for post-attack UST holders
was published first on https://cointelegraph.com/news/terra-s-amended-revival-plan-would-decrease-the-allocation-for-post-attack-ust-holders