Terra's Founder Discloses How the Network Could Be Resurrected
Do Kwon, Terra's founder, has finally broken his silence in a new blog post detailing how the Terra ecosystem will be resurrected.
In his blog post, Do Kwon admitted that the network's decentralized stablecoin, UST, has lost the community's trust in its ability to serve as a decentralized coin for a decentralized ecosystem.
Terra's growth had previously been tied to UST, but with the coin's demise, the community should now focus on how the overall ecosystem can continue to grow, according to the founder.
Terra's community, according to Kwon, must rebuild the chain, and validators should reset the network to 1 billion tokens, which would be distributed as follows:
- 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 the community 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," as fees will no longer be enough to pay for security without the swap fees.
The founder explained why he believes UST holders should be compensated greatly, claiming that stablecoin holders should own a large portion of the network because they were the network's debt holders.
Apart from that, he added that Terra needs its token holders to stick around before the attack begins so that the ecosystem can continue to provide value.
He concluded that, while UST was not as successful as the community had hoped, it did not preclude the community from revisiting the concept in the future.