16 May 2022 13:15, UTC.
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Polygon, Juno and Fantom blockchains are trying to attract Terra-based projects after the collapse of its ecosystem.
Last week, the collapse of the stablecoin TerraUSD (UST) led to a 99.9% drop in the price of the linked token Luna (LUNA). During the incident, the network stopped twice to resuscitate the situation and although it has been restarted, some features on the network are still down. According to DeFiLlama, the incident caused the total value of assets on Terra to drop from more than $31 billion to about $400 million.
Faced with a serious liquidity crisis, some developers of apps hosted on Terra are deciding to host on other blockchains. Among those who decided to shut down their Terra protocols were various NFT and DeFi-based projects such as Kujira, Stader Labs, LunaBulls, LunarFlip and Hero NFT.
In response to this migration, blockchain teams are doing incentives to attract these developers by offering them supporting capital and other resources.
Ryan Wyatt, CEO of Polygon Studios, a division of Polygonwhich deals with NFT, games, and the meta universe, said on Twitter (the social network is blocked in Russia and belongs to Meta – the company is recognized as extremist in Russia) that his team is working closely with Terra-based projects to help them move to its network.
“We will invest capital and resources in these migrations to welcome developers and their respective communities to our platform,” Wyatt said.
Polygon wasn’t the only blockchain that developers who create products in the Terra ecosystem liked.
Juno, an interaction-focused smart contract network, submitted a new management proposal, asking for approval of incentives for 1 million JUNO tokens ($7 million), for Terra projects that want to migrate their applications. The Juno proposal gave notice that several Terra projects have expressed interest in migrating to the Juno Network. Juno’s blockchain has similarities to Terra’s technical architecture, as they both rely on the Cosmos SDK (code used by projects in the Cosmos ecosystem).
Blockchain Fantom also announced that it is offering grants, marketing and ecosystem connections for Terra projects looking for a new blockchain.
In addition, representatives and founders of other blockchains – Regen Network, FetchAI, Stargaze and Injective Protocol – have also encouraged the transfer of Terra-based projects with their chains in mind.
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