Do Kwon’s second resurrection proposal to divide Terra into two blockchains to make up for UST’s real-time collapse last week has been condemned by the Terra community.
It is widely accepted that a hard fork is preferable to using an aggressive burning process to restore Terra’s former prosperity. People also complain that Terra isn’t paying attention to the community and is more concerned with saving whales than they are with safeguarding them as typical smallholders.
To his credit, CEO Do Kwon isn’t giving up easily. On Monday, he recommended dividing the LUNA blockchain into Terra Classic and Terra chains. Luna Classic (LUNC) and Luna (LUNA) coins will be hosted by each of them.
A report from ZyCrypto previously said that the new chain will eliminate the UST algorithmic stablecoin and concentrate on decentralised finance (DeFi) applications. There would be an airdrop of the new chain’s token for holders of LUNA on the Terra Classic network. Terraform Labs will not participate in the airdrops for Terra, which is notable since Terraform Labs is a community-owned company.
Preliminary community voting suggests that, despite the official governance election starting on May 18, the popular attitude is strongly against forking the blockchain. More than 2,747 people have voted against the plan as of this writing on Terra’s research and governance forum. “No one wants a fork,” stated one member of the group. Only 10% of those polled support the plan.
As LUNA and UST debacles continue to unravel, Terra community members feel that establishing a new blockchain would solely benefit whales, while normal investors are left out in the cold.
He has also previously advocated burning and reinvesting in order to preserve the ecology. “Minting, forking, don’t produce value,” according to CZ. burning does not buyback.”
The South Korean Parliament has summoned Do Kwon to explain the Terra Crash
Since TerraUSD’s demise last week, the cryptocurrency market has been under pressure. Additionally, the rapid collapse of the cryptocurrency market has resulted in more countries and legislators calling for stronger crypto laws.
According to a story in a local newspaper on Tuesday, the conservative party in South Korea wants a parliamentary inquiry on the Terra fiasco. It was requested that Do Kwon be summoned to appear before the National Assembly’s Political Affairs Committee.
According to a committee spokeswoman, Yoon Chang-Hyeon, exchanges’ uncoordinated actions during the Terra breakdown prompted a number of problems. When it comes to UST/LUNA trading in particular, Coinone, Korbit, and Gopax all ceased operations on May 10, although Bithumb and Upbit didn’t follow suit until later in the week.
There isn’t much the government can do currently to safeguard investors without legislation. A proposal by Yoon is to invite exchange officials and Kwon before the National Assembly in order to find out what truly caused the crash and provide corrective measures that would safeguard investors.
As a result, the Terra community has a long road ahead of it. There is no telling whether the historic collapse would be “an opportunity to rise up afresh from the ashes” as Kwon has already said.