The Terra USD’s traumatic fall bombed out the whole crypto market to the ground. Aftermath of the plunge, many lost a huge sum, many sold their share below the market rate and some unable to forebear the misfortune tragically committed suicide.
The promising news for Luna holders, however, came out a couple of days ago when Do Kwon, co-founder and CEO of Terraform Labs, in a post on a forum for Terra discussion said that he is planning a revival for the Terra ecosystem by forking the chain and resetting the network ownership under a new token. This has been said to be a way of compensation to all those who are damaged by the loss instead of abandoning the stablecoin entirely.
“UST Has Failed”, says Do Kwon, “but I hope the community can achieve speedy consensus on how to revive the Terra ecosystem,” he added.
Later on a Tweet he expressed his condolence about the pain his invention has brought on holders, saying that he had spent the last few days on the phone, empathizing with members, employees and families who were devastated by UST depegging.
Kwon believes that while UST has been the central narrative of Terra’s growth story over the last year, it is in fact the community that is worth preserving.
The restoration of the UST’s peg will need a community for Terra to continue to grow and make its blockspace valuable again. They hope for the new chain to be a “community-owned” rather than a “decentralized network”. "It is a hard balance – and no easy answers in redistributing value within the network. But value must be distributed to allow the ecosystem to survive, and in its current state it will not." wrote Kwon.
By the start of the depegging this month 400 million of the Terra fork’s tokens will be distributed among prior LUNA and UST holders. New Luna holders will get 10% each too, after the de-peg and the Community pool.
Many reacted to the plan as a justification and stereotype of all failed projects which have destroyed thousands of lives overnight. Among these was Billy Markus, co-founder of Dogecoin, who mockingly replied to Kwon’s empathizing Tweet by saying that he’d better off leaving the space forever and not taking any more lives to near desolation.