Terra’s Co-founder Summoned by South Korean Government Over Recent Collapse

• Do Kwon was requested to appear in front of the Korean parliament.
• Kwon has put up a proposal to salvage the ecosystem.

The steep decline of Terra (LUNA) and the algorithmic stablecoin UST have been hot topics in the crypto community. It’s now been sought by the South Korean Conservative Party to hold a parliamentary hearing. In a local news story, Korean exchanges reacted differently to the collapse, with Do Kwon, the co-founder of Terraform Labs, being summoned to a parliamentary hearing on Tuesday.

The committee’s representative, People’s Power’s Yoon Chang-Hyeon, said:

“There is a part that raises questions about the behavior of exchanges during the crash.” “Coinone, Korbit and Gopax stopped trading on May 10, Bithumb on May 11 stopped trading daily, but Upbit did not stop trading until May 13.”

Hard Fork Solution Offered 

Do Kwon was requested to appear in front of the Korean parliament because of the harm made to domestic investors. Kwon has proposed a hard fork to discover a solution.

Kwon has put up a proposal to salvage the ecosystem since its algorithmic stablecoin UST was depegged and the accompanying death spiral that decimated LUNA tokens to nearly nothing. Kwon proposed yesterday that the Terra ecosystem be split into two chains, with the present network being called “Terra Classic” (LUNAC) and the new chain is called “Terra” (LUNA).

According to Kwon, the existing tokens will be renamed LUNAC, while the new tokens will be renamed LUNA. To implement the new chain, Terra developers will need to airdrop new LUNA tokens to holders of the existing LUNAC and UST tokens and developers, Kwon said.