Terraform Labs founder Do Kwon proposed a "Terra Ecosystem Revival Plan" in a forum post published 30 minutes ago.
Kwon's "Revival Plan" amounts to a reboot of the entire Terra blockchain, with network ownership distributed entirely to UST and LUNA holders through 1B new tokens.
The plan comes at a time when Terra's TerraUSD (UST) stablecoin, which is supposed to be pegged to the price of $1, has fallen below 15 cents this week - losing more than $30 billion in value. UST's sister token LUNA, which has propped up the value of the stablecoin, has fallen to below a penny (LUNA was worth over $80 just a week ago).
In his proposal Friday, Kwon, who developed the Terra blockchain with his Terraform Labs team, acknowledges that the Terra ecosystem has completely collapsed.
"Even if the [UST] blockchain eventually recovers after the last marginal buyers and sellers capitulate, the holders of Luna have been liquidated and diluted to such an extent that we will lack the ecosystem to rebuild from the ashes," Kwon wrote.
He continued, "UST holders need to own a large stake in the network because, as debtors to the network, they deserve compensation for the tokens they held to the end."
This is an evolving story. Check back for updates.