Changpeng Zhao supports the Terra community, but expects more transparency from the creators.
The founder of Terraform Labs, Do Kwon, proposed a “Revival Plan” for Terra Ecosystem by writing a forum post. His proposal provides for the redistribution of ownership rights to the network. According to Kwon’s plan, the entire Terra blockchain should be restarted, while the ownership of the network is fully distributed between UST and LUNA holders through 1 billion new tokens.
Also in a post on the forum, Kwon writes about the total destruction of the ecosystem: “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,”.
At the same time, Do Kwon noted that it is very important to ensure that UST holders own a large share of the network, because holders deserve compensation for the tokens they held until the end.
The plan has certainly attracted a lot of attention. The CEO of Binance, Changfeng Zhao, expressed his doubts about its effectiveness.
He questioned the idea of a blockchain hard fork as a way out of the crisis of the Terra (LUNA) and Terra USD (UST) ecosystems. At the same time, Changpeng Zhao shared his algorithm of actions for falling projects in the crypto community.
He tweeted that Kwon’s plan would not work and rejected the validators’ idea of TERRA2 hard fork, which would include providing a new version of LUNA to all holders based on a snapshot of assets before the market collapse. Changpeng Zhao suggests: “Reducing supply should be done via burn, not fork at an old date, and abandon everyone who tried to rescue the coin.”
Without ignoring the potential problems with the branching of Terra, CEO Binance stressed that “Minting, forking, doesn’t create value.” Despite this, Changfeng Zhao recommended buying back and burning as an ideal way to restore the token’s market value.
Like the creator of Terra, Changpeng Zhao expressed his support to the community, and asked for more transparency from the Terra team, calling for the demonstration of detailed information about specific transactions on the network (transaction IDs) of all funds. “Failures can/will happen. But when they do, transparency, speedy communication and owning responsibility to the community is extremely important.” — writes Changpeng Zhao.
Today it is very difficult to predict what the path of revival of the Terra ecosystem will be in the end. It can be assumed that in the world of cryptocurrencies there will always be like-minded people and those who will criticize the decisions of the creators. But the great interest in the topic and the proposals for overcoming this crisis, is gathering pace and so is the importance of restoring the Terra ecosystem.
