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Many crypto giants including Binance CEO, CZ had earlier expressed their disapproval over the Terra forking plan. Do Kwon has however decided to take the lone path by putting forward a proposal for the same. The majority of crypto space frowned upon the decision immediately after.
Crypto community not happy with Revival Plan 2.0
The founder of Terra, Do Kwon announced earlier in the evening about his proposal submission for a governance vote. Positive affirmations by the master of stablecoin were clearly not enough to calm the community down. LUNAtics, who are usually very supportive of the crypto were visibly distressed. The majority of the market had proposed a burn and reduce alternative to forking the existing stablecoin.
The CEO announced as part of the proposal, “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.”
Giants not happy with Do Kwon
According to Changpeng Zhao, the forking will flop since it does not add any value to the new fork. He tweeted, “minting coins (printing money) does not create value.” It just “dilutes the existing coin holders.” UST holders felt they were completely neglected in the proposal and that it was an ambitious plan.
Zhao reacted to the forking news with an unexplained tweet stating “SMH.” SMH (Shake My Head) is a common abbreviation used to express total disagreement. CZ continues to be in complete denial of this idea.
A very upset user, also commented, “This just looks like a really bad idea, if you guys have the intention and funds to put in something like that you should save the original chain, you can still fix the original Luna, there is no need for a fork like this.”
Another market viewer added, “This is an awful plan and you have proved you should no longer be in charge. We need a community proposal to introduce a burning mechanism to LUNA to restore confidence and bring on new investment. Anything short of this will be a waste of developer resources going forward.”
Do Kwon thinks reconstituting the Terra chain to preserve the community and the developer ecosystem is key. The LFG has promised transparency on the missing Bitcoin reserve. If the proposal successfully passes the governance votes, “it will coordinate the network fork pursuant to the “Timeline” below.” The total market cap of Terra Luna has dropped below $1billion.