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Difference between revisions of "LUNA Collapse in May 2022"
→Rescue efforts and second depeg: more updates w/ terra ecosystem plan from Do Kwon
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Do Kwon tweeted that Terra would increase the redemption capacity of UST to allow the peg to stabilize quicker.<ref>https://twitter.com/stablekwon/status/1524331171189956609</ref> This would result in more LUNA being in circulation, with some crypto twitter users estimating a 6x increase in circulating supply.<ref>https://twitter.com/pythianism/status/1524432742892507136</ref> From May 11th to 12th, it has resulted in LUNA’s supply increasing from 1.5 billion tokens to 110 billion tokens so far, and is expected to continue to rise.<ref name=":0" /> On May 12th, LUNA hit a low of $0.00079. | Do Kwon tweeted that Terra would increase the redemption capacity of UST to allow the peg to stabilize quicker.<ref>https://twitter.com/stablekwon/status/1524331171189956609</ref> This would result in more LUNA being in circulation, with some crypto twitter users estimating a 6x increase in circulating supply.<ref>https://twitter.com/pythianism/status/1524432742892507136</ref> From May 11th to 12th, it has resulted in LUNA’s supply increasing from 1.5 billion tokens to 110 billion tokens so far, and is expected to continue to rise.<ref name=":0" /> On May 12th, LUNA hit a low of $0.00079. | ||
The efforts are ongoing. | On May 13th, Do Kwon released a Terra Ecosystem Revival Plan on the Terra forum.<ref>https://agora.terra.money/t/terra-ecosystem-revival-plan/8701</ref> If approved, this proposal would reset the network ownership to 1B tokens and have a new distribution plan:<blockquote>Validators should reset the network ownership to 1B tokens, distributed among: | ||
* '''400M (40%)''' to Luna holders before the depegging event (last $1 tick before the depeg on Binance should be reasonable), bLuna, LunaX and Luna held in contracts should also be recipients, minus the Terraform Labs account at terra1dp0taj85ruc299rkdvzp4z5pfg6z6swaed74e6. The new chain should be community owned. Preserving decent ownership of the network in its strongest believers and builders is important. | |||
* '''400M (40%)''' to UST holders pro-rata at the time of the new network upgrade. UST holders need to be made whole as much as possible | |||
* '''100M (10%)''' to Luna holders at the final moment of the chain halt – last minute marginal luna buyers should be compensated for their role in attempting to provide stability for the network | |||
* '''100M (10%)''' to the Community Pool to fund future development. | |||
* All Luna besides the third tranche should be staked at the network genesis state. | |||
* The network should incentivize its security with a reasonable inflation rate, say 7%, as fees will no longer be enough to pay for security without the swap fees. | |||
</blockquote>The efforts are ongoing. | |||
== Chainlink Oracle failure == | == Chainlink Oracle failure == | ||