Do Kwon calls for restart of Terra blockchain in ‘revival plan’ (Cryptocurrency:LUNA-USD)

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Terraform Labs founder Do Kwon on Friday has published a much-awaited “revival plan” for the Terra ecosystem, as billions of dollars have been wiped out from Terra’s LUNA tokens (LUNA-USD) and stablecoin TerraUST (UST-USD), according to an online forum Friday.

LUNAs (LUNA-USD -99.5%) are changing hands at less than one cent in afternoon trading, compared with nearly $85 just a week ago. TerraUST (UST-USD), the sister token of LUNA, is a whopping 85% away from its $1 peg, changing hands at $0.15.

“The Terra community must reconstitute the chain to preserve the community and the developer ecosystem.” Do Kwon said.

Do Kwon’s proposed rescue plan ultimately calls for a redo of the Terra blockchain by getting validators to reset network ownership to 1B coins distributed among LUNA and UST holders. Moreover, 40% of those tokens would be directed to UST holders before the de-pegging event. Another 40% goes towards UST holders once the new network upgrade begins. And 10% of the coins will be split for Luna holders at the final moment of the chain halt; another 10% to the community pool to fund future development.

Meanwhile, Kwon admitted to UST’s failure, saying “even if the peg were to eventually restore after the last marginal buyers and sellers have capitulated, the holders of Luna have so severely been liquidated and diluted that we will lack the ecosystem to build back up from the ashes.”

Take a look at SA contributor Investment U’s analysis on whether Terra can be salvaged.

Earlier this week, Terra briefly halted transactions on the blockchain.

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