Do Kwon, the co-founder and CEO of Terraform Labs, pitched a revival plan proposal on Friday following the collapse of the algorithmic stablecoin UST and its related Terra-based asset, Luna.
The proposal, included in a post on a forum for Terra discussion, amounted to a restart of the Terra blockchain. “The Terra community must reconstitute the chain to preserve the community and the developer ecosystem,” Kwon wrote.
Such a restart, as the proposal states, would create 1 billion tokens to be distributed among various community stakeholders. Such an approach would be necessary given the runaway inflation of Luna tokens, owing to the relationship between LUNA and UST, and the collapse in the market price of the Terra-based assets.
The thinking goes that this approach would incentivize this community to stick around in order to rebuild.
“While UST has been the central narrative of Terra’s growth story over the last year, the Terra ecosystem and its community is what is worth preserving,” Kwon wrote.
Kwon’s proposed plan calls for 40% of the tokens to go to Luna holders before the UST de-pegging, 40% to go to UST holders “pro-rata at the time of the new network upgrade,” 10% to Luna holders before the chain halt, and 10% to the “Community Pool to fund future development.”
“Terra needs a community to continue to grow and make its blockspace valuable again – the only way to do this is to make sure that token holders before the attack commenced, the most loyal community members and builders, stick around to keep providing value,” Kwon wrote, adding:
“It is a hard balance – and no easy answers in redistributing value within the network. But value must be distributed to allow the ecosystem to survive, and in its current state it will not.”
Kwon’s post came amid questions about his whereabouts, given that the previously prolific social media user had gone quiet amid the turmoil.
This story will be updated with additional information.