After the huge loss investors experienced when the supply-demand ratio of the algorithmically built stablecoins failed, major crypto exchanges, including Binance and Coinbase, blocked Terra-Luna coins.
Do Kwon, Terra Labs’ CEO and co-founder, has finally spoken out about the Terra-Luna stablecoins’ crash.
The CEO is on the lookout for a solution to bring the Terra environment back to life.
Terra LUNA: Hard Fork is the name of this strategy.
This is the company’s second recovery strategy, according to the CEO. Kwon advocated ditching the Terra stable coin and transferring Luna tokens to community members in his first proposal on May 14, but that did not work out.
Kwon, on the other hand, does not appear to be ready to give up.
The Terra ecosystem’s design problems will presumably be addressed by the founder.
A hard fork is when the blockchain network validates all invalid blocks and transactions.
Terra will no longer be tied to the present Terra blockchain, but will instead be linked to a new blockchain, after which the Terra token will be transferred to TerraClassic, Terraform Labs’ algorithmically built stablecoin.
Binance CEO Chengpeng Zhao does not support the hard fork method.
He recommended that investors burn the coin instead.
Burning is the act of sending cryptocurrency to a ‘dead wallet,’ from which the tokens cannot be recovered.
This could help to balance the currency’s supply.
When the supply of tokens decreases, so does inflation.
This could aid Terraform Labs in reclaiming their token.
While Kwon does not believe in burning money, the CEO went against his original ‘hard fork’ plan and publicly revealed a Luna burn address at the request of community members.
Every Luna token received to this address will be instantly burnt, significantly lowering the amount of Luna tokens in circulation.
The supply of Luna is currently 6.1 trillion, far exceeding that of Terra, which is only 1 billion.
Terraform Labs currently has no solid plans to resolve the Luna-Tera issue.
Investors will have to wait a little longer to discover what the future holds.
