Terra CEO Do Kwon broke his silence and shared his new recovery plan via Terra’s website.
Kwon said in a statement that the value of LUNA and UST has reached almost zero and has lost a great deal of confidence.
Kwon stated that preserving the Terra ecosystem and community is of paramount importance, emphasizing that the Terra community must rebuild the chain to preserve the community and developer ecosystem.
As the proposal states, restarting the ecosystem will create 1 billion tokens that will be distributed among various community stakeholders. Such an approach will be necessary given the runaway inflation of LUNA tokens and the collapse in the market price of Terra-based assets due to the relationship between LUNA and UST. “While UST is the central narrative of Terra’s growth story over the past year, the Terra ecosystem and community is what is worth preserving,” said Kwon
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Kwon’s proposed scheme requires 40% of tokens to go to Luna holders before UST is fixed, and 40% to UST holders on a pro-rata basis during the new network upgrade. 10% to LUNA owners before the chain stops, and 10% to the Community pool to finance future development.
“Terra needs the community to continue growing and revalue block space. The only way to do this is to ensure that token holders, most loyal community members, and developers stay connected to continue providing value before the attack begins.
It’s a difficult balance and there is no easy way to redistribute value within the network. But for ecosystem survival, value needs to be distributed but not currently possible”
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