Terra's backers approved a plan to revive the failed venture without the controversial stable coin.
With overwhelming support, the Terra community voted to pass Proposal 1623, which calls for the creation of a new blockchain and the preservation of our community.
The proposal would lead to the creation of a shared ledger of transactions and a luna token, which is worthless after investors fled en masse in the crypto equivalent of a run on the bank.
terraUSD plunged below its intended $1 peg earlier this month. The panic in the market was caused by investors dumping luna.
TerraUSD is a stable coin. It was designed to maintain its dollar value through the creation and destruction of UST and luna, which would help balance supply and demand.
tether andUSDC are meant to operate with actual currency held in a reserve to support the dollar peg in the event clients withdraw their funds.
At their peak, luna and UST had a market value of over $60 billion.
Terra plans to give the old luna classic and UST token to the holders.
30% of the token will go to a pool of investors in the Terra community, while 35% will go to those who held luna before it collapsed. 25% of the token will be given to traders who still own luna and UST after the crash.
According to data from coinGecko, Luna spiked more than 20% Wednesday. UST was up over 50%.
Terra's revival plan won't work for many market watchers.
There has been a huge loss of confidence in the Terra project according to the head of international at Luno.
This is a crowded space with a number of platforms that have a lot of developer activity. I don't think Terra would succeed here.
The Terra debacle has knocked investor confidence in the market, which has lost $600 billion in value in the past month.
Federal Reserve Chair Janet Yellen and European Central Bank President Christine Lagarde have called for urgent regulation of stable coins.
All Rights Reserved © 2024
