- Terra Ecosystem is having a troubled time, as the ecosystem has witnessed one of the greatest falls in its price, inflicting a damage of Billions.
- However, Do Kwon took it to Twitter, and offered some robust suggestions to implement in the ecosystem, giving hope to its recovery.
- As this article was being written, Terra (LUNA) was trading at a market value of $2.65, down by 90.93% during previous 24 hours.
Do Kwon On The Rescue
These are some catastrophic times for Terra ecosystem, as it has lost over 90% of its value, a terrible thing right? But Do Kwon, CEO of Terraform labs has offered solutions to restore the ecosystem.
1/ Dear Terra Community:
— Do Kwon
(@stablekwon) May 11, 2022
In a Twitter thread, he addressed that the previous 72 hours have been terrible for the Terra (LUNA) ecosystem, and still have hopes that it can still survive.
Kwon identified the total capital trying to exit UST has given rise to increased selling in LUNA, because of how stablecoin operates. This also resulted in an extreme drop in value, which is down by over 90% at the press time.
To initiate with, he is endorsing a community proposal which will escalate the amount of LUNA being minted every day by 4 times. This would allow more holders of UST to cash out.
A Closer Look at the Proposal
Proposal to escalate LUNA minting was put forward on governance forum of Terra. So far about 80 Million LUNA are in favor of it with not a single of it being utilized to vote against.
If adopted, this will enable traders to sell UST for LUNA at the quickest rate. As of now, so much UST can be sold every day, and the proposal says that this is creating LUNA to be minted at a worse value, resulting in extra minting of UST.
By escalating the amount of UST which can be swapped for LUNA, it will escalate the rate at which investors can exit their UST positions via LUNA. The hypothesis is that while this may escalate the total minted LUNA in a short time, it may diminish it over a longer timeframe and assist in recovery to peg to USD.
As this article was being written, Terra (LUNA) was exchanging hands at $2.65, bearish heavily by 90.93% during the previous 24 hours.
Source: https://www.thecoinrepublic.com/2022/05/11/do-kwon-offers-solutions-for-terra-ecosystem-can-it-push-luna-back-above-30/