Ethereum co-founder Vitalik Buterin feels that the Terra (LUNA) project should prioritize small buyers as part of any proposed repayment plan. Here are the last comments of Buterin…
Terra ecosystem proposes new projects to recover
As we have reported as cryptokoin.com , the Terra ecosystem’s stablecoin’ i (UST) diverged from the dollar peg and fell to around $0.10. On top of that, Terra’s LUNA token lost 100 percent of its value. While LUNA and UST investors seek to recover from significant losses, the community is now looking for ways to rebuild the ecosystem and potentially provide relief to many who are financially burned out.
One such community recommendation – assuming the UST dollar constant is fixed at the end – will first deplete all initial deposits (not returns) of small UST holders into “general morale and sentiment”. consists of paying back for “improving substantially”. Next comes figuring out how to rank creditors and larger investors. The payment is estimated to cost between $1 billion and $1.5 billion.
Vitalik Buterin’s statement to Terra (LUNA)
Buterin supported the idea via Twitter on May 15, suggesting that whalers should cover the loss, focusing on He stated that the point should be on the smaller investor who needs the money. Although the Ethereum co-founder did not explicitly ask for regulation, he stressed that potential coverages such as financial deposit insurance can be useful in these situations:
Help for the small investor and ‘SYFL’ for the rich (sorry for your loss) ) approach. An interesting one is Singapore employment law. It provides stronger regulations for low-income workers and a more ‘find-it-yourself’ approach for the wealthier. I think things like this are good hybrid formulas.
The obvious precedent is FDIC insurance (up to $250k per person)
An interesting unrelated one is Singapore employment law. Stronger regulation for low-earning employees, and a more figure-it-out-yourself approach for the wealthier.
IMO things like this are good hybrid formulas. pic.twitter.com/25XkfE8UVc
— vitalik.eth (@VitalikButerin) May 14, 2022
At this stage, whether the project can be rebuilt or compensated for investor losses. Whether it will aim for a temporary revival, however difficult, is uncertain. It’s worth noting that the relevant offer, which was the subject of Buterin’s comments, was updated during the week and is currently weighing paying all users up to $50,000 per wallet.
