Do Kwon, co-founder and CEO of Terraform Labs, has presented a plan for the recovery at Terra. This includes compensating holders of UST and LUNA for holding tokens during heavy downtrends. There was a lot of selling in Luna last week. The price of this algorithmic stablecoin created by Terra dropped to $0.22 on Wednesday and broke its link with the dollar. The reason for this was some big crypto investors selling it in large numbers. These investors feared that Terra’s bitcoin The plan to strengthen the UST may fail.
Moreover, the situation was further worsened by the fall of other stablecoins like Tether to below one dollar. “UST has been a major contributor to Terra’s growth,” Kwon wrote in a post on Terra’s discussion forum. Along with this, he said that community members need to make efforts to keep Terra community and developer ecosystem safe. stablecoins There are cryptocurrencies that try to link their market price to a reserve asset such as gold or common currencies. These are more commonly used for digital transactions that involve converting virtual assets into real assets. USD Coin, Tether and Binance USD are some of the popular stablecoins, which are pegged to the US dollar.
The recovery plan will see one billion tokens created to be distributed to various stakeholders in the community. Of these, 40 percent will go to Luna holders and 40 percent to UST holders. Tokens will also be given to the community pool to fund further development. The scheme has given some assurance to investors and this is being indicated by increased buying in Luna. However, Changpeng CEO of Binance, one of the major crypto exchanges, believes that this plan will not work. He tweeted and termed it as a good idea. <!–