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Do Kwon wants to get Terra back and compensate investors and developers

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Do Kwon, the mastermind behind Terraform Labs, has revealed yet another plan to bail out his Terra blockchain project after the recent decoupling of UST from the US dollar caused its cryptocurrency Terra (Luna) to almost zero and the project is now on a knife edge.

in stream Entry Accordingly, on the Terra forum, Kwon urged the Terra community to “restore the blockchain network to keep the community and developer ecosystem alive.” The project leader points to the fact that some blockchain validators are now thinking out loud about starting a Terra-Chain hard fork. Kwon’s new plan is to compensate all owners of Ground Tanks and LUNA who were unable or unwilling to sell their assets during the meltdown.

In order to achieve this, Kwon wants the validators to return the free network assets to 1 billion tokens, which will then be distributed among the owners of LUNA and UST and flowed into a community pool to fund further development activities. Specifically, 40% of the new funds go to LUNA investors who owned the cryptocurrency before the UST split, with another 40% going to UST investors who invested in the stablecoin until the network upgrade, the next 10% in turn should go to LUNA investors who bought in Cryptocurrency even shortly before the date pause From yesterday the remaining 10% should be made available to the developer pool.

Kwon remains realistic in formulating his goals, acknowledging that it is unlikely that the 1:1 peg to the US dollar will be re-established, but the Terra boss also believes this is not necessary:

“Even if we were able to fully reconnect after the last margin traders exit, LUNA investors are so liquidated and weakened that we simply lack the ecosystem to start over.”

At its peak in early April, LUNA had a market capitalization of more than $41 billion, according to data from CoinMarketCap. Meanwhile, the stablecoin TerraUST, which is no longer a single, had a market cap of $19 billion at its peak. The loss of connectivity drove the ground tanks to $0.13 on Friday.

So while there doesn’t seem to be a way to get that market value back, Kwon wants to make sure that at least the project’s “loyal community and developers” are compensated.

LUNA’s stock chart ends in a total meltdown. Source: CoinMarketCap
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Kwon’s new proposals come about two days after another terra boss was introduced contingency plan Provided to save the connection of the floor cabinets. However, the ideas contained in it were apparently not convincing, as the stablecoin and its associated cryptocurrency LUNA continued to decline.

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