Terra’s founder, Do Kwon, has finally ended his radio silence in a newly published blog post where he revealed how the Terra ecosystem would be revived.
Do Kwon in the blog post conceded that the network’s decentralized stablecoin, UST, has lost the trust of the community to continue to play the role of a decentralized coin for a decentralized ecosystem.
The founder continued that Terra’s growth had previously been tied to UST, but with the demise of the coin, the community should now focus on how the general ecosystem would be able to continue to grow.
Kwon Proposes 1 Billion Terra Tokens
According to Kwon, Terra’s community must reconstitute the chain and validators should reset the network to 1 billion tokens which would be distributed this way:
- 400 million units of the token should be given to previous holders of the LUNA who saw the values of their coin depreciate badly.
- 400 million units should be given to UST holders on a pro-rata basis.
- The last 200 million units should be divided between the community pool which would be used to fund future projects and those who bought LUNA at the last minute in their attempt to help save the coin, equally.
Kwon advised that the community should attempt to “incentivize its security with a reasonable inflation rate, say 7%, as fees will no longer be enough to pay for security without the swap fees.”
On why he thinks UST holders should be compensated immensely, the founder opined that the stablecoin holders need to own a large part of the network because they were the network’s debt holders.
Apart from that, he added that Terra needs its token holders before the attack begun to stick around to continue to provide value for its ecosystem.
He concluded that while UST was not as successful as the community might have envisaged, it doesn’t mean that the community cannot return the idea sometimes in the future.