Terra Luna’s recovery plan after 100% wipeout

Do Kwon, the founder of Terraform Labs, reveals a plan to bring the Terra ecosystem back on track after obliteration in the past week

Do Kwon, Terraform Lab’s founder has finally broken his silence in a newly released blog post in which he reveals how the Terra ecosystem can be brought back on the track after the crash. 

Admitting defeat 

Kwon admitted in the blog post that the network's decentralised stablecoin, TerraUSD, has lost the community's trust in continuing to serve as a decentralised coin for a decentralized ecosystem. 

New tokenomics 

Kwon asserts that Terra's community must reassemble the chain and that validators should reset the network to 1 billion tokens, which would be allocated as follows: 

400 million units of the token should be distributed to former Terra Luna holders whose coins depreciated significantly. 

400 million units should be distributed proportionally to TerraUSD holders. 

The final 200 million units should be distributed evenly between the community pool, which would be used to support future projects, and those who purchased Terra Luna at the eleventh hour in an effort to save it. 

New inflation rate 

Kwon encouraged the community to "incentivise its security with a realistic inflation rate, say 7 percent," as revenues will no longer be sufficient to cover the cost of security without swap fees. 

Sharing ownership of network 

Stablecoin holders must possess a large share of the network because they were the network's debt holders, according to the inventor of stablecoins, who believes TerraUSD holders should be compensated. 

Network loyalty is the need of the hour 

Apart from that, he added that Terra's ecosystem needed token holders from prior to the attack to remain in order for it to continue to provide value. He finally stated that just because TerraUSD was not as successful as the community had hoped does not mean it would not be revisited in the future. 

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