Kwon advocated, via a Terra discussion site, that the network be effectively restarted by releasing 1 billion tokens to affected holders and users.
Do Kwon, CEO, and co-founder of Terraform Labs, broke his silence on social media early this Friday with tweets promoting Terra’s LUNA token and stablecoin, UST.
The meltdown of the algorithmic stablecoin
“The #LUNAtics have shown incredible strength. More to follow”
The coupled meltdown of the algorithmic stablecoin UST and Terra’s native LUNA asset resulted in significant losses for those exposed to the market, as The Block reported last week.
As the circulating amount of LUNA increased, the accompanying chaos resulted in blockchain outages and market trading halts.
Terra developers said early Friday that they were working on a post-mortem report for the previous week’s events.
Must-know facts about the Terra ecosystem
The Terra blockchain is unusual in that it can support a large number of algorithmic stablecoins.
For algorithmic stablecoins, the Terra protocol is the dominant decentralized and open-source public blockchain protocol.
The Terra protocol uses a combination of open market arbitrage incentives and decentralized Oracle voting to create stablecoins that track the price of any fiat currency.
Terra stablecoins can be spent, saved, traded, and swapped rapidly on the Terra network.
Staking benefits and governance authority is provided to Luna holders. The Terra ecosystem is a fast expanding network of decentralized applications, resulting in increased Terra demand and Luna pricing.
About Luna and Terra
Terra: Stablecoins that track fiat currency prices. Users can produce new Terra by burning Luna. The currency analogues of stablecoins are named after them.
The base Terra stablecoin, for example, tracks the price of the IMF’s SDR, known as Other stablecoin denominations including TerraUSD or UST, TerraKRW or KRT, and TerraKRW or KRT.
Luna: Terra’s native staking token that absorbs the protocol’s price fluctuation. Luna is used for mining and governance.
In exchange for transaction fees, users stake Luna to validators who record and validate transactions on the blockchain. Luna is valued more the more Terra is utilized.
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Source: https://www.thecoinrepublic.com/2022/05/15/do-kwon-ceo-of-terraform-labs-broke-his-silence-on-the-fall-of-luna-and-ust-stablecoin/