His proposal revolves around reconstituting the chain and resetting the total supply of tokens to 1 billion.
According to him, there are still UST worth billions in circulation even if the value of Luna has fallen to almost zero. With the massive dilution of Luna supply, it’s impossible to build back the confidence.
Do Kwon’s Revival Plan
According to his proposal, the Terra ecosystem and community should be preserved because of the value it has to offer.
“The Terra community must reconstitute the chain to preserve the community and the developer ecosystem,” he said.
Kwon also offered ideas on how to reconstitute the blockchain network, with the central idea being resetting Luna’s supply to 1 billion tokens. He suggested that the new supply should be for Luna holders before the de-peg, UST holders, Luna holders at the chain halt, and the Community pool.
Both UST holders and early Luna holders will get 40% each based on the redistribution formula. While new Luna holders after the de-peg and the Community pool will get 10% each too.
He added that the distribution makes perfect sense because
UST holders need to own a large share of the network, as the network’s debt holders deserve to be compensated for the tokens they have been holding to the end.
There have been several responses to the proposal so far. Most of them are questions about those who hold Luna on centralized exchanges , aUST holders, wLUNA, etc. But some disagree with the redistribution methods.
Terra Founder Saddened by Failed Invention
Do Kwon also expressed his sadness over Terra’s demise on Twitter after what has been a terrible week for the ecosystem.
1/ I’ve spent the last few days on the phone calling Terra community members – builders, community members, employees, friends and family, that have been devastated by UST depegging. I am heartbroken about the pain my invention has brought on all of you. — Do Kwon License.