Do Kwon, the co-founder of Terraform Labs has set introduced a proposal to preserve the Terra ecosystem following the depegging of its algorithmic stablecoin, UST, which resulted in the decline of its LUNA token to zero.
In a recent post on Terra’s research forum the co- founder stated that the community must rebuild the chain to preserve the community and the developer ecosystem. His proposal,involves compensating UST and LUNA holders who were incapable or reluctant to sell their holdings during this week’s price collapse.
It was proposed that the validators should reset network ownership to 1 billion tokens distributed among LUNA and UST holders as well as a community pool to fund future growth.
40% of the newly distributed tokens would go toward LUNA holders who held the asset before the depegging, another 40% would go towards UST holders on a pro-rata basis at the time of the new network upgrade, 10% would be allocated to LUNA holders just before the chain halted operations and the remaining 10% would go toward the development pool.
At its height LUNA’s market cap was over $41 billion. The value of Terra’s UST, peaked at almost $19 billion. After losing parity with the dollar, UST crashed to a low of around $0.13 on Friday.
