According to the Terraform Labs CEO’s “Terra Revival Plan,” ownership of the network would be redistributed.
Terraform Labs founder Do Kwon proposed a “Terra Ecosystem Revival Plan” in a forum post on Friday.
Kwan’s “Terra Revival Plan” involves relaunching Terra’s blockchain, with network ownership going to more than 1 billion UST and LUNA holders.
Terra’s terraUSD (UST) stablecoin, intended to be pegged to $1, plummeted below 15 cents this week, wiping out over $30 billion in value. The value of LUNA, UST’s sister token, has fallen to below a penny (LUNA was worth more than $80 a week ago).
In Friday’s proposal, Kwon, who created the Terra blockchain with his Terraform Labs team, admits that the Terra ecosystem has totally collapsed.
“Even if the [UST] peg were to eventually restore after the last marginal buyers and sellers have capitulated, the holders of Luna have so severely been liquidated and diluted that we will lack the ecosystem to build back up from the ashes,” Kwon wrote.
He continued, “UST holders need to own a large share of the network, as the network’s debt holders they deserve to be compensated for the tokens they have been holding to the end.”