Terraform Labs New Amendments For The Revival Plan

May 20, 2022 - Around 2 mins mins to read

Terraform Labs has been working on a recovery strategy after the recent catastrophe. A hardfork was approved by a majority of Terra community members.

Terraform Labs New Amendments For The Revival Plan

Terraform Labs CEO Do Kwon’s “Ecosystem Revival Plan 2” was updated on Friday to include Terra community feedback. Terra has issued an addendum to proposal 1623 and has made three important adjustments in response to community criticism.

Improving Genesis Liquidity:
Terraform Labs believes that by taking this action, it is defending the interests of minor wallet holders who had LUNA prior to the hack. Terra claims to have increased the initial liquidity parameters for “pre-attack $aUST holders, post-attack $LUNA holders, and post-attack $UST holders” from 15% to 30%. This will assist to keep future inflationary pressures at bay.

Holders of pre-attack LUNA will receive a new liquidity profile:
Wallets with less than 10K LUNA would have the same genesis liquidity, with 30% unlocked upon launch, thanks to the revised liquidity profile. The remaining 70% of liquidity will also be released in 6-month increments over the next two years.

Terra goes on to say that by implementing this new liquidity profile, tiny $LUNA investors will have identical initial liquidity profiles. This would cover 99.81 percent of $LUNA wallets whilst representing just 6.45 percent of total $LUNA at the time of the assault.

Reduced Distribution to Post-Attack UST Owners:
Terra has chosen to lower the post-attack UST allotment from 20% to 15%, according to Terra. This will guarantee that the de-pegged allocation remains consistent with the initial stakeholder distribution.

According to Terra, the 5% difference in payout to post-attack UST holders would be donated to the community pool. Terra has launched voting on proposal 1623, which will be available for 5 days.

The Terra ecosystem’s demise has shaken the whole crypto market. It has also proven to be one of the largest and fastest wealth erosions for crypto investors, vanishing almost $40 billion in just a week.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Jai Hamid

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Terraform Labs New Amendments For The Revival Plan

Terraform Labs has been working on a recovery strategy after the recent catastrophe. A hardfork was approved by a majority of Terra community members.