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Do Kwon Suggests Terra Hard Fork to Revive Troubled Network

Do Kwon, the CEO of Terraform Labs, believes hard forking the Terra blockchain will play an instrumental role in saving the troubled network.

In a series of tweets, Kwon suggested:

“The Terra chain as it currently exists should be forked into a new chain without algorithmic stablecoins called “Terra” (token Luna – LUNA), and the old chain be called “Terra Classic” (token Luna Classic – LUNC). Both chains will coexist.”

According to Investopedia, a hard fork refers to a radical change to the protocol of a blockchain network that effectively results in two branches, one that follows the previous protocol and one that follows the new version. In a hard fork, holders of tokens in the original blockchain will be granted tokens in the new fork as well, but miners must choose which blockchain to continue verifying.

After being forked, the new chain, Terra (LUNA), will not support the algorithmic TerraUSD (UST) stablecoin, whereas the old one will house the Luna Classic (LUNC) token.

Kwon’s proposal for a hard fork is based on the lack of a consensus among different stakeholders. He stated:

“Competing interests from varied stakeholders (e.g.,$LUNA holders, UST holders, Terra builders, etc.) make it extremely difficult and unlikely to achieve consensus on a cohesive, congruent plan.”

Therefore, the new LUNA will be airdropped to residual UST holders, essential app developers, and LUNC holders.

The rain started beating the Terra network after UST’s price experienced a free fall to the extent that leading crypto exchange Binance temporarily halted its withdrawals together with that of LUNA.

Things got worse for LUNA, given that it sent shockwaves to the crypto market by collapsing to near-zero overnight.

At the time, Kwon pointed out that the price stabilization mechanism had a hand in the problem. He noted:

“The price stabilization mechanism is absorbing UST supply (over 10% of total supply), but the cost of absorbing so much stablecoins at the same time has stretched out the on-chain swap spread to 40%, and Luna price has diminished dramatically absorbing the arbs.”

If Kwon’s proposal sees the light of day, the new chain will go live on May 27 because he trusts that Terra is more than UST.

Former Tmon CEO faces arrest for taking bribes to promote Terra Classic

After the former CEO of Tmon, a Korean e-commerce platform, was accused of taking billions of won worth of Terra (LUNA), which is now known as Terra Classic (LUNC), in exchange for promoting Terra as a straightforward payment gateway, prosecutors in South Korea have asked for an arrest warrant to be issued for the individual.

According to a report by the Dong-A Ilbo media outlet, the head of the financial and securities joint investigation team at the Seoul Southern District Prosecutor’s Office requested an arrest warrant for bribery charges to be brought against the former CEO of Tmon, referred to as “Mr. A,” as well as a person referred to as “broker B,” who worked on lobbying in the financial sector in favor of Terra.

According to the allegations, Mr. A was given LUNC tokens by Shin Hyun-Seong, who is also known as Daniel Shin, the co-founder of Terra. Shin urged Mr. A to actively promote Terra as a straightforward method of payment. Following this event, Tmon began promoting LUNC and spreading the word that the token is a reliable investment. The investigators believe that the advertising were responsible for the price growth of the token since they raised the expectations of investors.

It is speculated that the former CEO of Tmon has profited billions of won from the sale of the LUNC tokens that were obtained in return for the marketing. In addition, the investigation emphasized that in spite of warnings from financial regulators, Shin has apparently contributed money to other businesses such as Tmon to promote LUNC as a secure payment mechanism. This was one of the points that was underlined in the research.

On November 14, prosecutors in South Korea made an official request for Shin to assist with the investigation into the collapse of the Terra. The police said that Shin had been in possession of LUNC tokens without the knowledge of the investors and had made illicit transactions totaling more than 105 million dollars prior to the collapse of the firm.

The prosecutors who are in charge of the case have been continually broadening the scope of their investigations and focusing their attention on additional individuals implicated. On the 30th of November in the year 2022, the authorities in South Korea issued an arrest order for Shin, along with three investors in Terra and four engineers responsible for the project.

OPNX to Launch FatManTerra Justice Token, Airdropping to LUNC and LUNA Holders

OPNX has announced the imminent launch of the FatManTerra Justice Token. This move comes in response to the commencement of legal proceedings against FatManTerra by several parties.

According to OPNX’s tweets, the Justice Token is a novel mechanism designed to return potential settlement outcomes to communities harmed by defamation.

The tokens will be distributed equally between RLB, LUNA, LUNC, and OX holders, representing four communities allegedly harmed by FatManTerra’s long-term malicious disinformation. The full details of the Justice Token can be found in OPNX’s official document.

OPNX has clarified that the distribution of Justice Tokens will be modified to reflect the communities harmed as mentioned above. It’s also important to note that Justice Tokens must be considered independent meme tokens with no intrinsic value, no backing, or expectation of return.

A distribution of the entirety (after costs) of potential settlement outcomes will only occur if determined by the justice system, at OPNX’s discretion.

In response to the announcement, FatManTerra replied, “There’s no way you guys are turning this into a scam too lmao,” expressing skepticism towards the initiative.

The launch of the FatManTerra Justice Token by OPNX marks a unique approach to addressing legal disputes and alleged defamation. While the initiative has been met with both interest and skepticism, the final outcome of the legal proceedings and the distribution of the Justice Tokens remains to be seen.

It is worth noticing that OPNX is a new crypto and RWA exchange platform launched by controversial and bankrupted former Three Arrows Capital founders.

SEC Collaborates with South Korea in Probing Terraform Labs and Do Kwon

The U.S. Securities and Exchange Commission (SEC) has secured approval to collaborate with South Korea in its probe against Terraform Labs and its co-founders, Daniel Shin and Do Kwon. This decision, sanctioned by District Judge Jed Rakoff on August 16, allows the SEC to question Shin and access documents from Chai Corporation, a Seoul-based payments provider he founded.

Shin and Kwon co-founded Chai in 2019, initially operating closely with Terraform. By 2020, the companies had diverged. The SEC’s investigation focuses on Chai’s use of the Terra blockchain and its relationship statements with Terraform. The reasons behind Chai’s separation from Terraform are also under scrutiny.

While Terraform Labs and Kwon didn’t oppose the SEC’s motion, they presented their own queries and have previously refuted the SEC’s claims. Accusations suggest that they falsely stated Chai’s use of the Terra blockchain for transactions.

In May 2022, the Terra cryptocurrency ecosystem experienced a staggering $40 billion loss, causing its token, LUNA, to plummet nearly to zero and triggering a broader market crash. Subsequently, the LUNA token split into two distinct entities: LUNA and LUNA Classic (LUNC). South Korean prosecutors have since charged Shin with fraud, accusing him of hiding the risks associated with investing in Terraform’s cryptocurrency.

On February 16, 2023, the U.S. Securities and Exchange Commission (SEC) charged Singapore-based Terraform Labs and its CEO, Do Hyeong Kwon, with conducting a multi-billion dollar crypto fraud from April 2018 to May 2022. The scheme involved various unregistered crypto asset securities, including “mAssets” and the Terra USD (UST) stablecoin. The SEC alleges that Terraform and Kwon falsely marketed these assets, promising high returns and misleading investors about their stability and usage. In May 2022, the value of these tokens crashed. The SEC emphasizes the importance of transparency and adherence to securities laws in the crypto sector.

Kwon is currently jailed in Montenegro for trying to exit using a fake Costa Rican passport, resulting in a three-month sentence. He faces investigations in both the U.S. and South Korea, beyond the SEC’s complaint.

Upbit Announces Next LUNA2 Airdrop for LUNC Holders

Upbit, the South Korean-based cryptocurrency exchange, has detailed its plans for the forthcoming LUNA2 airdrop targeting LUNC holders. LUNC, previously known as LUNA, underwent a rebranding and its holders are now on the cusp of receiving LUNA2 tokens.

Snapshot Insights

The LUNA2 airdrop is slated to kick off in the next 24 hours.

A staggered distribution approach has been adopted, with 70% of the airdrop tokens to be rolled out over a span of 24 months.

Two pivotal snapshots were captured to determine the airdrop’s distribution:

1. First snapshot: 2022-05-07, 22:59:37 (SGT) at block height 7,544,910. Exchange rate: 1 LUNC = 1.034735071 LUNA2.

2. Second snapshot: 2022-05-27, 00:38:08 (SGT) at block height 7,790,000. Exchange rate: 1 LUNC = 0.000015307927 LUNA2.

A bonus provision is in place: LUNC holders with a balance exceeding 10,000 at the first snapshot’s time will be entitled to an extra 30% of the initial airdrop during the second phase.

Caveats to Consider

Upbit’s endorsement of the airdrop doesn’t equate to a trading green light for LUNA2 on their platform.

UNA2 airdrop quantities will be truncated to a maximum of 8 decimal places.

Monthly LUNA2 airdrop quantities are subject to change, contingent on the vesting release strategy, a decision resting with the token’s governing foundation.

The Upbit team signed off the announcement, reiterating their commitment to their user base.

Binance Accelerates LUNC Burn, Fuels Market Optimism with Over 49 Billion Tokens Burned

Binance, the biggest cryptocurrency exchange in the world, has successfully carried out the 17th batch of its LUNC token burn mechanism, which is a major step for the Terra Luna Classic (LUNC) ecosystem. This most recent burn resulted in the withdrawal of an astounding 5.57 billion LUNC tokens from circulation, which represents a new milestone in the exchange’s dedication to lowering the quantity of LUNC tokens.

The most recent token burn that Binance carried out is a component of an ongoing plan to minimize the amount of Terra Luna Classic tokens that are already in circulation. The exchange has been actively engaged in the burn mechanism ever after Changpeng “CZ” Zhao resigned from his position as CEO of the financial institution. Over 49 billion tokens have been burnt by Binance as a result of this most recent burn, which accounts for 53 percent of the total tokens that have been destroyed by the Terra Luna Classic community.

When it comes to the LUNC market, the sequence of token burning that Binance has been doing has had a significant influence. As a result of the most recent burn, there was a substantial rise in the values of both LUNC and USTC tokens, with the value of LUNC witnessing an increase of 8%. This favorable market response highlights the effect that Binance’s activities have had on the general attitude and dynamics that are present within the cryptocurrency market.

Beyond token burning, Binance is involved in the Terra Luna Classic ecosystem in a variety of other ways. By implementing a number of different initiatives, the exchange has been a significant contributor to the improvement of trade volumes and interest in LUNC. This includes the launch of new trading pairs and perpetual contracts for USTC, both of which have contributed to the increased trading activity and visibility of Terra Luna Classic tokens. It is important to note that these developments have occurred.

Despite the fact that the first reaction of the market to Binance’s token burning has been favorable, traders and investors are encouraged to maintain a position of vigilance. Because of the volatility that is characteristic of the cryptocurrency market, there is a possibility that token values may fluctuate in the near future due to the possibility of profit booking. While the Terra Luna Classic community and Binance continue their efforts to stabilize and improve the value of LUNC, the larger market dynamics will play a significant part in determining the direction that the token will take.

Terra Classic (LUNC) Community Approves Landmark Proposal to Burn 800 Million USTC

In a community vote, members of the Terra Classic (LUNC) ecosystem have sanctioned a groundbreaking proposal to incinerate 800 million units of its TerraUSD Classic (USTC) tokens. The initiative, conducted through atomscan.com/terra/votes/12073, represents a substantial step towards the rehabilitation and stabilization of the Terra Classic network.

Community Empowerment in Blockchain Governance

The successful passage of the proposal is a testament to the robust decentralized governance framework that underpins the Terra Classic ecosystem. Token holders exercised their voting rights, reflecting the community’s collective will and the decentralized autonomous organization (DAO) ethos that the blockchain industry stands for.

The Significance of the USTC Token Burn

The decision to burn a substantial quantity of USTC tokens via a contract migration mechanism is poised to have far-reaching implications for the Terra Classic network. Token burns are often implemented as a deflationary measure to reduce supply and potentially increase the value of the remaining tokens. This move is particularly significant in the context of Terra Classic’s efforts to regain trust and stability following the infamous collapse of its sister stablecoin, UST, in May 2022.

A Glance at Terra Classic’s Journey

The Terra ecosystem experienced a dramatic upheaval with the depegging of its algorithmic stablecoin, which led to a catastrophic loss of value. In the aftermath, the community has been actively working to restore credibility to the network. Measures such as this token burn are part of a broader strategy to reform the Terra Classic blockchain and salvage its cryptocurrency.

A Hopeful Horizon for Terra Classic

The approval of the USTC token burn proposal has been met with optimism within the cryptocurrency community. It signifies the power of community-led initiatives in steering the direction of blockchain projects. Moreover, it underscores the potential for recovery and innovation even after substantial setbacks in the volatile crypto landscape.

Forging Ahead with Caution and Governance

While the burn proposal has been well-received, it also serves as a reminder of the importance of sound governance and risk management in the DeFi sector. The Terra Classic community continues to tread a path of cautious optimism, with eyes set firmly on long-term sustainability and responsible management of their revived ecosystem.

In conclusion, the Terra Classic community’s vote to destroy 800 million USTC tokens is a bold move that demonstrates the power of decentralized decision-making. As the Terra Classic network endeavors to rebuild, this development could mark a turning point in its recovery narrative.