The Terra community has opposed Do Kwon’s second revival plan to fork Terra to create two blockchains in a bid to make up for last week’s real-time collapse of UST.
The community supports implementing an aggressive burning mechanism to revive the once-thriving Terra ecosystem instead of a hard fork. Moreover, most claim the Terra team is not listening to the community and seems hell-bent on protecting the whales instead of the average smallholders.
Terraforms Labs CEO Do Kwon is not ready to give up. On Monday he proposed splitting LUNA’s blockchain into two chains: Terra Classic and Terra. They will host the Luna Classic (LUNC) and Luna (LUNA) cryptocurrencies respectively.
As ZyCrypto reported earlier, the new chain would completely cut out the beleaguered UST algorithmic stablecoin and focus on decentralized finance (DeFi) applications. The existing chain would continue as Terra Classic and holders of LUNA on this chain would receive an airdrop of the new chain’s token. Notably, Terra will be community-owned in that Terraform Labs will not be a part of the airdrops.
Although the formal governance voting will begin on May 18, preliminary voting by community members shows that the general sentiment is overwhelmingly against forking the blockchain. The proposal has received over 2,747 votes on Terra’s research and governance forum at press time, with 90% voting against it. One community member said: “No one wants a fork”. Only 10% have voted in favor of the move.
Most Terra community members are displeased with how events unfolded for LUNA and UST, but they believe creating a whole new blockchain will only benefit the whales all while retail holders get burned.
Binance CEO Changpeng Zhao has also previously recommended burning and buying back as great ways to save the ecosystem. In CZ’s opinion, “Minting, forking, don’t create value. Buying back, burning does.”
Do Kwon Summoned To South Korea Parliament To Explain Terra Crash
Crypto markets have been under pressure in the past week following the collapse of TerraUSD. Besides sparking outrage among distressed investors, the dramatic crash has also seen more governments and lawmakers pushing for stricter crypto regulations.
And now the South Korean Conservative Party wants a parliamentary hearing on the Terra debacle, according to a report by a local publication on Tuesday. The National Assembly’s Political Affairs Committee, in particular, asked to summon Do Kwon for a hearing.
A spokesperson for the committee, Yoon Chang-Hyeon, raised various questions regarding the uncoordinated behavior of exchanges during the Terra meltdown. For instance, Coinone, Korbit, and Gopax discontinued trading of UST and LUNA on May 10, while Bithumb and Upbit didn’t halt trading until May 11 and May 13 respectively.
Without legislation, there’s not much the authorities can do right now in terms of investor protection. Yoon has suggested bringing exchange officials and Kwon to the National Assembly to ascertain what really caused the downfall and put forward remedial measures aimed at protecting investors.
That being said, the Terra community is facing an uphill battle from here. Whether the historic implosion turns out to be “a chance to rise up anew from the ashes” as Kwon has previously posited is anyone’s guess.