Authorities Move in on TerraForm Labs as Do Kwon sets out the future

avatar

Authorities move in on TerraForm Labs.jpg

Authorities Move in on TerraForm Labs as Do Kwon sets out the future

In a last ditch effort to reboot the failed Luna Network Do Kwon has decided to fork the network and pay out the smallest investors with the remainder of the Luna Foundation Guard which only has $US120 Million left in assets.

At it's peak the Network was valued at over $ US40 Billion dollars which received $US200 Million in start up capital from a number of mainstream investment firms who managed to turn their investments into fortunes as they exited the network. The crypto crash has left many small retail investors holding the bag as the broader sector grapples with what has occurred.

Unlike many other Crypto start ups TerraForm Lab's Luna Network was established to challenge the banking system and managed to raised a significant amount of hype. Do Kwon himself, a computer scientist who studied in the United States.

Luna has been one of the most successful blockchain projects since Bitcoin's inception, until it failed.

aaaaaa.JPG
Image Source

Do Kwon the Brash CEO

Do Kwon was well known for his brash behaviour quite often trolling criticism with many pointing to the projects weaknesses and Do Kwon brushing them off with attacks.

In recent statements just before the collapse Do Kwon made comments such as "I don't debate the poor" and as Luna and its algorithmically pegged stable coin UST began to collapse he Tweeted I love Chaos.

Authorities move in on TerraForm Labs 1.jpg

Do Kwon announces the way forward

Do Kwon recently shared his proposal that explains what and how the future of Luna will look like with the fork creating Terra and dumping the algorithmic stable coin UST. However, Luna in its former form will continue to be around called Luna Classic - LUNC.

Yes, there will be compensation paid to former holders however you will need to wait for payment as it will all be provided as locked with a large chunk of it requiring 2 and 4 year vesting periods. So this could turn out to be good, set and forget.

Full details of the token distribution:
Token Distribution

Community pool: 25%
Controlled by staked governance
10% earmarked for developers
Pre-attack LUNA holders: 35%
All bonded / unbonded Luna, minus TFL at “Pre-attack” snapshot; staking derivatives included
For wallets with < 1M Luna: 1 year cliff, 2 year vesting thereafter
For wallets with > 1M Luna: 1 year cliff, 4 year vesting thereafter
Pre-attack aUST holders: 10%
500K whale cap - covers up to 99.7% of all holders but only 26.72% of aUST
15% unlocked at genesis; 85% vested over 2 years thereafter with 6 month cliff
Post-attack LUNA holders: 10%
Staking derivatives included
15% unlocked at genesis; 85% vested over 2 years thereafter with 6 month cliff
Post-attack UST holders: 20%
15% unlocked at genesis; 85% vested over 2 years thereafter with 6 month cliff
Definitions:

“Pre-attack” snapshot to be taken at at Terra Classic block 7544915 (2022.05.07 23:00:04+08:00)
“Post-attack” snapshot to be taken at Terra Classic block 7790000 (2022.05.27 03:59:51+08:00)

All tokens locked or vesting are staked at genesis, and must be unbonded to become liquid.

As Do Kwon announces his way forward South Korean Authorities announced they will be investigating TerraForm Labs and have already requested transactions from leading exchanges.

Despite TerraForm Labs crash from the heavens they still have funds to pick up and start again. It isn't the first time a crypto project has flatlined and was reborn, will TerraForm Labs do it or has everyone lost trust?

Image sources provided supplemented by Canva Pro. This is not financial advice and readers are advised to undertake their own research or seek professional financial services

Posted Using LeoFinance Beta



0
0
0.000
10 comments
avatar

As someone who lost money, what's your answer to the question?

Can you ever trust them with your money again?

Posted Using LeoFinance Beta

0
0
0.000
avatar

Probably not with the amount I had in there. Also their pathway to me shows they are more inclined to recoup losses for bigger players. UST and LUNA are broken and I'm guessing it will remain open for the transaction fees.

The question needs to be asked, what difference will the new Luna make to the sector. It did well because it had an algo stable coin which was new and everyone gambled on it.

Purely another PoS network in a sector that is already crowded, is it worth it?

Also. Terra just proved that stable coins that are algorithms are bad but so to is the PoS system.

41% of the network that had Luna staked got left holding the bad while 59% got out and then bots kicked in to drain LP through arbitrage.

Posted Using LeoFinance Beta

0
0
0.000
avatar

Also their pathway to me shows they are more inclined to recoup losses for bigger players.

Yep, this is what makes me cringe too.

But whatever model they choose, there will be people who feel they didn't get what they deserved somewhere.

As long as Do Kwon is involved, he will cop the blame and the new incarnation will always be tainted.

The community have gotta ditch him if they want to move on.

Posted Using LeoFinance Beta

0
0
0.000
avatar

If they wanna move on.. they need to move onto hive.. this is where communities thrive.

0
0
0.000
avatar

If they do drop him, what does Terra have to offer that people should pick them over other blockchains?

Posted Using LeoFinance Beta

0
0
0.000
avatar

Well that's a whole other issue.

But choice and interoperability is good for the whole industry.

We shouldn't be cheering for anyone to fail.

Posted Using LeoFinance Beta

0
0
0.000
avatar
(Edited)

they will keep on increasing the market supply of the coin as soon as new investments come in. Don't invest any money in that scam.

0
0
0.000
avatar

This post has been manually curated by @bhattg from Indiaunited community. Join us on our Discord Server.

Do you know that you can earn a passive income by delegating your Leo power to @india-leo account? We share 100 % of the curation rewards with the delegators.

Please contribute to the community by upvoting this comment and posts made by @indiaunited.

0
0
0.000
avatar

It looks like they want to offer some airdrops to both sides. However, I don't think either side will be happy with this and I wonder what features this blockchain offer that other blockchains don't? I felt that the UST and APR were the biggest reason but they are removing that.

Posted Using LeoFinance Beta

0
0
0.000