Since Terraform Labs’ cryptocurrency LUNA and algorithmic stablecoin Terra USD (UST) crashed and brought down the cryptocurrency markets, it has been over two weeks. The project’s inventor, Do Kwon, and organizations connected to it have held open discussions regarding the following methods to try to resuscitate the Terra ecosystem. However, inside Luna Foundation Guard (LFG), advisors have barely had any talks with Kwon and his team, and UST is “very much extinct at this time,” according to Jonathan Caras, a member of the LFG governing council. (LFG was a charity organization founded by Terra in Singapore to safeguard UST.)
One of the four counselors for Kwon’s LFG, Caras, remarked, “It’s been quite quiet.” Since May 7, when UST started depegging from its (what was supposed to be) stablecoin value, there hasn’t been a meeting with the advisers, claims Caras. According to CoinMarketCap statistics on Friday, LUNA has decreased almost 99 percent from its pinnacle to $0.0001398—less than one tenth of a cent—while UST has decreased 92.1 percent to $0.079 from its $1 peg. The market value of UST fell precipitously from all-time highs close to $19 billion to less than $1 billion.
There was a lot of discussion and brainstorming that day, but since then, “at least one that I’ve been asked to, there hasn’t been much of a dialogue,” Caras said. According to Caras, the consultants at LFG served more as “thought leaders” than as UST operators. He said that the discussions were more technical in nature as opposed to tactical, since they centered on how to design or manage the mechanics of changing UST from a solely algorithmic stablecoin to a semi-backed, mixed basket of crypto assets.
The reality is that, like everyone else, I acquired my information about this incident on Twitter, said Caras. On May 13, Kanav Kariya, the head of Jump Crypto and another consultant to LFG, tweeted the following: “I’m not sure how to phrase this. For our entire neighborhood, this week has been a living nightmare. Although I am confident that we will emerge from this stronger, it still isn’t any easier.
Despite the sharp decline in value of LUNA and UST, Caras thinks that Terra’s biosphere is still very much intact. Kwon tweeted on May 18 that the Terra community is now voting on a governance proposal that will rename the current network Terra Classic and LUNA Classic (LUNC) and “rebirth a new Terra blockchain.” A sizable group of people on Terra, known as LUNAtics, are certain that the ecology will survive even if UST were to perish. I believe in the industry’s enduring success, added Caras.
