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What if Terraform Labs Undertakes This Hypothetical Step to Save LUNA & UST Price?

Written by: Sahana Vibhute

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Sahana Vibhute

A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

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May 14, 2022

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Highlights

    Terraform labs are busy designing a new framework for the mechanism to be implemented for the stablecoin

    While people believe the platform may burn excess LUNA tokens or fully collateralized the UST stablecoin, another step may fasten the process

Will LUNA be Forked Amid the Recovery Plan?

After the recent nightmare of the UST de-pegging and LUNA price crashing to the dust, the platform was heavily criticized for not handling the situation wisely. Yet Do Kwon, founder, in a post says he is ‘heartbroken’ about the LUNA & UST situation. And hence in the latest update, he has pitched a recovery plan to reset the total circulating supply to 1 billion and distributed it to:-

  • 40% or 400 million among the LUNA holders before the de-pegging incident
  • 40% or 400 million to UST holders pro-rata at the time of new network upgrade
  • 10% or 100 million to the LUNA members who held until Terra’s blockchain was halted
  • 10% to the community pool. 

However, just before the Terraform labs came up with this idea, the LUNA fork was a much-discussed topic. And many experts had an opinion about the platform to issue new coins to the holders. But they believed scrapping the current coins in circulation is pretty necessary before air-dropping the new coins. 

While some others believe LUNA has to be forked away from Terraform labs and start from the genesis. Also, leave UST behind and allow it to die while an airdrop of a new LUNA fork to the stakes may be given. However, other analysts believe that everything cannot be fully repaired. And importantly the builders and developers are required to get back on their feet to prevent the ecosystem from dying. 

Also Read: No $LUNA or $UST Were Sold This Crash Says Terra Founder Do Kwon Outlining Recovery Plan

LUNA – UST Price Movement Now!

LUNA after being delisted scrambled heavily but also recovered in a very short time. Currently, the price is hovering around $0.0001699 with a jump of 216.6% as the platform has announced air-dropping the LUNA tokens. The market capitalization also has recovered above $1 billion while the trading volume also remains elevated above $2 billion at the press time

On the other hand, UST price remains largely declined as it has dropped heavily below $0.15, losing more than 9.22% at the press time. Despite huge tokens in circulation being burnt, no specific change in the price has been witnessed. And hence only a complete change in the mechanism or the asset being fully collateralized may save the platform from breaking into the dust.

Also Read: After Terra(LUNA) Debacle, Investors and Traders to Twirl Towards Bitcoin & Ethereum

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Sahana Vibhute

A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

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