NewsletterAs Terra Collapses, This Proposal Attempts To Save Developers And Users
Terra community the Terra Builders Alliance on Friday made a new proposal to protect developers and users as the blockchain collapsed.
The proposal, called the ‘LUNA Go Forward Proposal’ calls for the minting and distribution of new LUNA to holders, stakers, and developers to save them from the impact of the crisis.
Terra community Proposes LUNA Distribution To Developers and Holders
The Terra Builders Alliance on Friday has considered 9th May at 15:00 UTC as the timeline based on which new LUNA will be distributed. Under the plan, 40% will be distributed to LUNA stakers, another 40% will be distributed to UST holders at the time of the new network launch.
Additionally, 10% will be distributed to marginal LUNA holders between the attack and the halt of Terra, and 10% will be distributed to developers of the ecosystem which comprises Dapps, service providers, infrastructure providers, etc.
Terra Builders Alliance has created a Twitter account to collectively work with the community and developers to determine the best way forward. A Discord account is also opened for community members to join and discuss problems and solutions.
“Once the UST has been swapped with Luna at the new network launch, it will cease to exist in its current form and will be relaunched after genesis in collateralized form.”
It also proposes to halt the blockchain validation first in order to discuss the distribution of the new token during the Terra blockchain halt. In fact, the Terra blockchain was halted twice in the last 12 hours.
The proposal appears to be gaining some traction on the Terra forums. But it remains to be seen whether Terra’s lead developers will consider it.
LUNA and UST Dive Further
The LUNA price has fallen 99.98% to $0.000059 at the time of writing. The market cap has fallen immensely as the token now ranks 222 on CoinMarketCap. Whereas, UST after losing its peg to the US dollar now trading at $0.18.
The Terraform Labs and the developers are still working on the solutions. Recently, emergency measures were announced to recover the DeFi token price and UST. The company is also in discussion with investors and firms to raise capital and re-establish the UST-USD peg.
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