Ethereum co-founder says every ‘average smallholder’ impacted by Terra’s stablecoin crash should be made whole
The Terra ecosystem completely unraveled last week, taking much of the cryptocurrency market down with it. Its algorithmic stablecoin TerraUSD (UST) crashed far below its $1 peg, and its sister token Luna collapsed to nearly zero.
Though the overall market is now recovering, the demise of UST and Luna wiped out many cryptocurrency investors’ life savings. This left the Terra community, including its creator Do Kwon, proposing plans to somehow fix the damage done.
One proposal on the Terra forum suggests that Terra should make investors “whole” again with its remaining funds—and Ethereum co-founder Vitalik Buterin is all for it, with a few tweaks.
Buterin agreed with one Twitter user who said that Terra should prioritize helping “smaller wallets,” or people who had “a couple thousand or more of UST deposited in Anchor,” rather than “rich whales.”
$Ethereum(ETH.CC$ $Terra(LUNA.CC$ $Bitcoin(BTC.CC$ $AMC Entertainment(AMC.US$ $Dogecoin(DOGE.CC$
Though the overall market is now recovering, the demise of UST and Luna wiped out many cryptocurrency investors’ life savings. This left the Terra community, including its creator Do Kwon, proposing plans to somehow fix the damage done.
One proposal on the Terra forum suggests that Terra should make investors “whole” again with its remaining funds—and Ethereum co-founder Vitalik Buterin is all for it, with a few tweaks.
Buterin agreed with one Twitter user who said that Terra should prioritize helping “smaller wallets,” or people who had “a couple thousand or more of UST deposited in Anchor,” rather than “rich whales.”
$Ethereum(ETH.CC$ $Terra(LUNA.CC$ $Bitcoin(BTC.CC$ $AMC Entertainment(AMC.US$ $Dogecoin(DOGE.CC$
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mesapsa : Buterin also criticized algorithmic stablecoins on Twitter, saying that “‘algostable’ has become a propaganda term serving to legitimize uncollateralized stables by putting them in the same bucket as collateralized stables.”
Revelation 6 : I think the creators do have some responsibility to the investors. They made billions off of it and didn’t collateral or make a reserve for it. I mean a real reserve.
000000000 : soon, there will be even more "do kwon"s to destabilise the entire fragile system
Tyler Maltz OP 000000000 : do kwon??
Tyler Maltz OP Revelation 6 : Yes, except that he's certainly not accountable to most investors.
Tyler Maltz OP mesapsa : right