Terra Founder Do Kwon Says Bitcoin Reserves Deployed For Rescue Plan
Terra founder Do Kwon has finally come public on Twitter after announcing the “Terra ecosystem revival plan.” Do Kwon says the team is currently working on using the Bitcoin reserves of Luna Foundation Guard (LFG) to rescue the Terra ecosystem. The focus is to save the community and developers.
Do Kwon Seeks To Rescue Terra Using Bitcoin Reserve of LFG
Do Kwon also clarified that no LUNA and UST tokens were sold during the crisis. He says the priority of Terra is to first preserve its L1. Moreover, the community should collaborate to discuss decentralized money once the situation has settled.
The team is currently working on the LFG Bitcoin reserve to protect the community and developers on the Terra ecosystem. The proposals on Agora continue to provide the best steps to move forward for the community. The loyal holders and developers will be compensated so that they will be able to continue providing value and support to the Terra ecosystem.
“We are currently working on documenting the use of the LFG BTC reserves during the de-pegging event. Please be patient with us as our teams are juggling multiple tasks at the same time.”
UST’s fall from grace has destroyed investor faith in the Terra ecosystem. At this point, with both UST and LUNA floundering well below $1, it remains unlikely that Terraform will be able to restore value to the blockchain.
Earlier on Friday, Kwon had proposed resetting Terra’s ownership to 1 billion tokens in a bid to restore some value. The main priority right now is to protect the developers and core elements of the blockchain.
Institutions Related to Terra Faces Pressure
Institutions related to Terra such as Three Arrows Capital are under loss due to the LUNA and UST crisis. Moreover, VanEck and 21Shares on Friday suspended the creation and redemption of shares in their respective Terra ETPs. This came after LUNA falls below $0.00050 and UST falls below $0.20, destabilizing the Terra ecosystem.
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