Stablecoin News

LUNA Founder Faces Community Backlash Over LUNA Revival Plan; Here’s Why

%%excerpt%% The founder of Terra is facing a hard time over disapproval of his forking idea from the crypto space. LUNA holders were hopeful of an algorithm fix instead of a de-valuing fork.
Published by
LUNA Founder Faces Community Backlash Over LUNA Revival Plan; Here’s Why

Many crypto giants including Binance CEO, CZ had earlier expressed their disapproval over the Terra forking plan. Do Kwon has however decided to take the lone path by putting forward a proposal for the same. The majority of crypto space frowned upon the decision immediately after.

Advertisement

Crypto community not happy  with Revival Plan 2.0

The founder of Terra, Do Kwon announced earlier in the evening about his proposal submission for a governance vote. Positive affirmations by the master of stablecoin were clearly not enough to calm the community down. LUNAtics, who are usually very supportive of the crypto were visibly distressed. The majority of the market had proposed a burn and reduce alternative to forking the existing stablecoin.

The CEO announced as part of the proposal, “The Terra chain as it currently exists should be forked into a new chain without algorithmic stablecoins called “Terra” (token Luna – $LUNA), and the old chain be called “Terra Classic” (token Luna Classic – $LUNC). Both chains will coexist.”

Advertisement

Giants not happy with Do Kwon

According to Changpeng Zhao, the forking will flop since it does not add any value to the new fork. He tweeted, “minting coins (printing money) does not create value.” It just “dilutes the existing coin holders.” UST holders felt they were completely neglected in the proposal and that it was an ambitious plan.

Zhao reacted to the forking news with an unexplained tweet stating “SMH.” SMH (Shake My Head) is a common abbreviation used to express total disagreement. CZ continues to be in complete denial of this idea.

A very upset user, also commented, “This just looks like a really bad idea, if you guys have the intention and funds to put in something like that you should save the original chain, you can still fix the original Luna, there is no need for a fork like this.”

Another market viewer added, “This is an awful plan and you have proved you should no longer be in charge. We need a community proposal to introduce a burning mechanism to LUNA to restore confidence and bring on new investment. Anything short of this will be a waste of developer resources going forward.”

Do Kwon thinks reconstituting the Terra chain to preserve the community and the developer ecosystem is key. The LFG has promised transparency on the missing Bitcoin reserve. If the proposal successfully passes the governance votes, “it will coordinate the network fork pursuant to the “Timeline” below.” The total market cap of Terra Luna has dropped below $1billion.

Advertisement
Share
Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • News

Pi Network Dedicates 350,000 Active Nodes for AI With OpenMind Partnership

In the latest development, the Pi Network Ventures announced its investment in artificial intelligence (AI)…

October 30, 2025
  • News

Breaking: Trump Cuts Tariffs as US-China Reaches 1-Year Trade Deal, Bitcoin Rebounds

US President Donald Trump reduced tariffs on China after a meeting with President Xi Jinping,…

October 30, 2025
  • News

Binance Responds to Charges of Supporting Trump-Family Crypto USD1 and WLFI Soon After CZ Pardon

US lawmakers have started accusing crypto exchange Binance of supporting Trump family projects like World…

October 30, 2025
  • Bitcoin News

SpaceX Makes Third Huge Bitcoin Transfer in 10 Days, Is Elon Musk Planning Something Big?

Elon Musk’s space exploration company, SpaceX, moved another 281 Bitcoin on Thursday, according to blockchain…

October 30, 2025
  • News

Crypto Market Tumbles as Jerome Powell Says December Rate Cut ‘Far From Certain’

The crypto market turned sharply lower on Tuesday after Federal Reserve Chair Jerome Powell said…

October 30, 2025
  • News

FOMC Meeting: Federal Reserve Lowers Interest Rates by 25 Bps in Second Cut of the Year

The U.S. Federal Reserve has announced it has lowered the interest rate by another 25…

October 29, 2025