{"id":61463,"date":"2022-05-14T10:41:22","date_gmt":"2022-05-14T07:41:22","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=61463"},"modified":"2025-09-05T12:19:19","modified_gmt":"2025-09-05T09:19:19","slug":"terraform-labs-ceo-do-kwon-proposes-plan-to-settle-ust-and-luna-fallout","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/terraform-labs-ceo-do-kwon-proposes-plan-to-settle-ust-and-luna-fallout\/","title":{"rendered":"Terraform Labs CEO Do Kwon proposes plan to settle UST and LUNA fallout"},"content":{"rendered":"<p>Terraform Labs CEO and co-founder Do Kwon <a href=\\\"https:\/\/agora.terra.money\/t\/terra-ecosystem-revival-plan\/8701\\\">proposed a plan<\/a> to address the fallout from the collapse of the UST stablecoin and the LUNA token.<\/p>\n<p><!--more--><\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>\u201cThe Terra community must rebuild the network to preserve itself and the ecosystem of developers,\u201d Kwon stressed.<\/p>\n<\/blockquote>\n<p>At the time of writing, the volume of the LUNA supply exceeds 6.5 trillion. Due to high inflation and heavy selling over several days, the price of the Terra ecosystem&#8217;s native token has effectively collapsed.<\/p>\n<p>At the time of writing LUNA traded at $0.00018566. Not long before the crash the token price exceeded $80.<\/p>\n<figure class=\\\"wp-block-image size-large\\\"><img loading=\\\"lazy\\\" decoding=\\\"async\\\" width=\\\"1024\\\" height=\\\"520\\\" src=\\\"https:\/\/u1f987.com\/wp-content\/uploads\/LUNA-price-1024x520.png\\\" alt=\\\"Terraform Labs CEO Do Kwon proposed plan to settle UST and LUNA fallout\\\" class=\\\"wp-image-173087\\\" srcset=\\\"https:\/\/u1f987.com\/wp-content\/uploads\/LUNA-price-1024x520.png 1024w, https:\/\/u1f987.com\/wp-content\/uploads\/LUNA-price-300x152.png 300w, https:\/\/u1f987.com\/wp-content\/uploads\/LUNA-price-768x390.png 768w, https:\/\/u1f987.com\/wp-content\/uploads\/LUNA-price-1536x780.png 1536w, https:\/\/u1f987.com\/wp-content\/uploads\/LUNA-price.png 1813w\\\" sizes=\\\"auto, (max-width: 1024px) 100vw, 1024px\\\" \/><figcaption>Daily LUNA\/BUSD chart on Binance. Data: TradingView.<\/figcaption><\/figure>\n<p>The price of the algorithmic stablecoin UST remains around $0.15.<\/p>\n<p>In an effort to change the situation, Kwon proposes restarting the network with 1 billion tokens to be distributed as follows:<\/p>\n<ul class=\\\"wp-block-list\\\">\n<li>40% of the coins \u2014 to LUNA holders at the moment of UST&#8217;s detachment from the US dollar;<\/li>\n<li>40% \u2014 to UST holders at the moment of the network update;<\/li>\n<li>10% \u2014 to LUNA holders at the moment of the network halt;<\/li>\n<li>10% \u2014 to the project development fund.<\/li>\n<\/ul>\n<p>Soon after publication of the proposal, Kwon said he was \u201cheartbroken\u201d that his invention had ultimately caused a lot of pain to the community.<\/p>\n<blockquote class=\\\"twitter-tweet\\\">\n<p lang=\\\"en\\\" dir=\\\"ltr\\\">2\/ I still believe that decentralized economies deserve decentralized money \u2013 but it is clear that <a href=\\\"https:\/\/twitter.com\/search?q=%24UST&#038;src=ctag&#038;ref_src=twsrc%5Etfw\\\">$UST<\/a> in its current form will not be that money.<\/p>\n<p>\u2014 Do Kwon \ud83c\udf15 (@stablekwon) <a href=\\\"https:\/\/twitter.com\/stablekwon\/status\/1525238418812178432?ref_src=twsrc%5Etfw\\\">May 13, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\\\"\\\" src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script><\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>\u201cI still believe that decentralized economies deserve decentralized money. But it is clear that in its current form UST will not become such money,\u201d he wrote.<\/p>\n<\/blockquote>\n<p>Kwon assured the community that neither he nor the organizations associated with him \u201cprofited in any way from this incident.\u201d<\/p>\n<blockquote class=\\\"twitter-tweet\\\" data-conversation=\\\"none\\\">\n<p lang=\\\"en\\\" dir=\\\"ltr\\\">3\/ Neither I nor any institutions that I am affiliated with profited in any way from this incident. I sold no luna nor ust during the crisis.<\/p>\n<p>\u2014 Do Kwon \ud83c\udf15 (@stablekwon) <a href=\\\"https:\/\/twitter.com\/stablekwon\/status\/1525238420506718209?ref_src=twsrc%5Etfw\\\">May 13, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\\\"\\\" src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script><\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>\u201cI did not sell LUNA and UST during the crisis,\u201d wrote Kwon.<\/p>\n<\/blockquote>\n<p>He stressed that the project team is currently working on many questions, including the use of the Bitcoin reserves of the Luna Foundation Guard.<\/p>\n<blockquote class=\\\"twitter-tweet\\\" data-conversation=\\\"none\\\">\n<p lang=\\\"en\\\" dir=\\\"ltr\\\">4\/ We are currently working on documenting the use of the LFG BTC reserves during the depegging event. Please be patient with us as our teams are juggling multiple tasks at the same time.<\/p>\n<p>\u2014 Do Kwon \ud83c\udf15 (@stablekwon) <a href=\\\"https:\/\/twitter.com\/stablekwon\/status\/1525238422264172544?ref_src=twsrc%5Etfw\\\">May 13, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\\\"\\\" src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script><\/p>\n<p>In May, the algorithmic stablecoin UST lost its peg to the US dollar. This occurred amid asset withdrawals from the Anchor protocol due to the deposit yield dropping to 17.87%.<\/p>\n<p>On May 10, the asset&#8217;s quotes again fell below $0.62. The decline continued on May 11, after which the cryptocurrency used to mint UST, LUNA, fell to $0.30.<\/p>\n<p>Later, Terraform Labs CEO Do Kwon presented a plan to restore UST&#8217;s price. Among the necessary steps he named \u201cabsorption of the supply from UST holders wishing to exit the asset.\u201d<\/p>\n<p>On May 12, CoinDesk reporters learned that Do Kwon was one of the anonymous co-founders of the failed algorithmic stablecoin Basis Cash.<\/p>\n<p>Subscribe to ForkLog news on Telegram: <a href=\\\"https:\/\/t.me\/forklogfeed\\\" target=\\\"_blank\\\" rel=\\\"nofollow noopener\\\">ForkLog Feed<\/a> \u2014 the full news stream, <a href=\\\"https:\/\/telegram.me\/forklog\\\" target=\\\"_blank\\\" rel=\\\"nofollow noopener\\\">ForkLog<\/a> \u2014 the most important news, infographics and opinions.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>CEO and co-founder Do Kwon presented a plan to address the fallout from the collapse of the UST stablecoin and the LUNA token.<\/p>\n","protected":false},"author":1,"featured_media":61464,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[852],"class_list":["post-61463","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-terra"],"aioseo_notices":[],"amp_enabled":true,"views":"22","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/61463","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=61463"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/61463\/revisions"}],"predecessor-version":[{"id":61465,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/61463\/revisions\/61465"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/61464"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=61463"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=61463"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=61463"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}