This week, the crypto market attempted to regain as much steam as possible from last week’s untimed market crash. Unfortunately, only small gains were seen across the crypto market. With major players like Bitcoin and Ethereum seeing only small gains of as much as 10-15%.
Bitcoin as of the time of writing is staying strong at its resistance level of $30,000 and Ethereum is trading at $2,000—both indicators that not all is lost in the current market forecast.
Terraform Labs founder Do Kwon is riding the wave of optimism, with a new plan dubbed, “Terra Ecosystem Revival” where the ambitious leader outlines his plan for the Terra Luna systems to recover after last week’s crypto apocalypse.
In the plan, Do Kwon explains how Terra can recover if it creates a fork to a new blockchain but without the stable coin, TerraUSD that initially led to the destruction of the entire ecosystem.
In this new proposed blockchain, Do emphasizes the use of Luna tokens which will be called, “Luna classic” and the new chain will be called, “Terra”. This new announcement has been met with largely favorable opinions amongst those in the Terra Luna community. But amongst the larger crypto community as a whole, there remains a lot of skepticism surrounding the utility of a new ecosystem without a stable coin.
A Leader With A Vision
The fearless leader of the Terra Luna ecosystem, Do Kwon seems unfazed by the doubt surrounding his company’s recent failure. His unyielding resolve is lending credibility to his project and its ability to recover. Ideally, Do Kwon said, this is what the new makeup of Terra Luna would look like,
“In terms of token distribution, 1bn new Luna tokens to be minted and distributed among the community pool (25%), Luna holders “pre-attack” (35%), Luna holders at “Launch” (10%), UST holders at “Launch” (25%), and developers (5%).”
Kwon went on to say,
“We believe this token distribution, in addition to best efforts by LFG to make UST holders whole, best solves for the varying interests and time preferences for each stakeholder group, and most importantly, creates the most viable path to revive the Terra ecosystem.”
Will this be enough to save the entire Terra Luna community? Will these efforts, although large as they may look, be enough to restore faith in a shaken community that has experienced nothing but volatility for years now. Kwon believes that his path to fixing the Terra Luna system is sound and can be achieved. The rest of the crypto community is standing back and allowing the young leader to attempt to save his company from abysmal failure again.
Is Terra Luna Saveable?
Do Kwon may be steel-clad in his resolve to save the Terra Luna community but not everyone is so convinced. A large part of the crypto community remains skeptical and with good reason. Kwon has done little to demonstrate that Terra Luna is a changed man, with a new way of conducting business. Although a new fork with a new blockchain may help ease things along, there remain many questions about the utility of the new blockchain.
Without the dollar peg and the utility of the stable coin, what good will the Terra Luna ecosystem be for the average crypto investor? And will there be another attempt at a stable coin using the same algorithmic formula that led to the crash in the first place?
Or will Terra Luna walk in the path of USDC and choose to back every one of their tokens with real-world assets? From what we see, only time will tell if Terra Luna rises from the ashes. As of the time of writing, the Terra Luna community is still alive and running. And are expecting updates to the system very soon.
