Terraform Lab founder Do Kwon finally broke the silence to offer a plan to relaunch the Terra ecosystem days after it crashed.

Even though he was at the heart of the Terra ecosystem, he eventually admitted that the UST had lost the trust of its users. The “stablecoin” will therefore not be reborn from its ashes.

Do Kwon’s idea today is to reset the Terra network and create a new LUNA token , while maintaining a strong community around this network.

Distribution of new tokens

Its current priority is thus to reconstitute the Terra blockchain in order to preserve its community and its ecosystem of developers . So that a majority of the network remains in the hands of its main promoters and users who believe in its future, it is mainly the community that will own this new channel.

He wants validators to redefine network properties to one billion tokens. The distribution of these tokens would then be as follows:

  • 40% – or 400 million – would go to Luna holders before depeg (the last time Luna was worth $1, before the de-indexing event on Binance), and to BLuna, Luna X and Luna holders via contracts.
  • 40% – or 400 million – to UST holders when the new network is set up, with the aim of reimbursing them as much as possible.
  • 10% – 100 million – to Luna holders at the time of the blockchain shutdown, in a bid to thank last-minute buyers for their effort to save the currency from the crash.
  • 10% – 100 million – in the community pool for funding future developments.
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Definition of a new inflation rate

Revenues are not enough to ensure network security. He plans to work to strengthen it through a more realistic rate of inflation. Do Know currently estimates this rate at 7% .

What future for Terra?

According to its founder Do Kwon, Terra’s mantra has always been “a decentralized economy needs a decentralized currency”. His goal for the future is to perpetuate this idea despite the failure of the UST.

Its priority, however, remains to preserve the ecosystem. For this, it will be necessary to bring together the community of those who continue to believe in Terra and above all to rebuild the confidence of other users .

The next step would be for the major ecosystem contributors to come together to discuss a new decentralized currency, when the storm has died down.

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