16 May, 2022

Ethereum co-founder thinks Terra should put small UST investors first.

Ethereum co-founder Vitalik Buterin has agreed with a proposal that asked Terra to reimburse its small UST investors. 

A Twitter user suggested that Terra should prioritize helping small investors rather than whales, to which Buterin agreed.

 “If Terra just focussed on the ‘poorest’ 99.6% of wallets, then they could make this gigantic group 100% whole,” the Twitter user proposed. 

Buterin quote retweeted the proposal saying, coordinated sympathy and relief for the average UST smallholder, and personal responsibility and SFYL for wealthy investors.

Buterin also added that the obvious precedent is FDIC insurance being up to $250,000 per person.

Ethereum founder also cited Singapore employment law which has stronger regulation for low-earning employees, and a more figure-it-out-yourself approach for the wealthier.

Last week Terra’s stablecoin UST lost its peg to dollar and caused many investors to lose their life savings.