The downfall of the Terra ecosystem is no news to anyone. The entire world witnessed the collapse of this asset. While the investors were left at bay, regulators grew weary of the damage the platform caused. With all of this in place, Terraform Labs, the firm behind UST and LUNA has continued to update its plans to revive the ecosystem.
A highly controversial proposal is the one to induce a hard fork. With a majority of LUNA holders voting in favor of this, it is likely that this plan would take off. With increased commotion surrounding these revival plans, Terra decided to roll out amendments to the proposal 1623. This would entail three key changes as requested by the community.
The first one would focus on sprucing up the genesis liquidity. This would primarily focus on shielding the smaller wallet holders that were holding LUNA before the attack. The liquidity has reportedly been pushed from 15 percent to 30 percent. This would further diminish the inflationary pressure in the future.
The second amendment of Terra would pave the way for a whole new liquidity profile for pre-attack LUNA holders. The tweet read,
Terra’s last amendment is expected to lower the distribution to post-attack UST holders. This amendment decreases the allocation for UST holders after the attack from 20 to 15 percent. The de-peg surrounding the allocation is expected to stay on par with the original stakeholder allocation, following this.
In addition to this, the 5 percent change from diminishing the distribution to post-attack UST holders would be allocated directly to the community pool.
Was Terra a rug pull? Tether CTO says no
Tether [USDT], the largest stablecoin witnessed its counterpart Terra go downhill. Now, the CTO of USDT, Paolo Ardoino decided to speak up about the event during his appearance in an episode of Reimagine Unplugged podcast.
While several labeled Terra a rug pull, Ardoino suggested otherwise and said that it was a “castle of cards” that was expected to collapse at any moment. He added,
“I don’t know Do Kwon. But let’s give him the benefit of the doubt. He created this project with arrogance and with thinking that he was right and many were supporting him, of course, probably for economic reasons, but was not per se, a rug pull right, it was a project that was poorly designed as many projects are poorly designed.”