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On Wednesday morning (May 18), Terraform Labs CEO Do Kwon voted on Twitter for a likely hard fork of the network to restore the ecosystem. The results of the event clearly demonstrated that the majority of respondents opposed this initiative.
A hard fork implies the forced separation of the blockchain chain, in which a clear algorithm functions. It differs from the already existing mechanism, and as a result, two separate chains of blocks are formed. One of them in the future becomes the main one.
According to Do Kwon’s proposal, the new structure should completely eliminate the unsuccessful asset in the face of UST. Instead, the platform will focus entirely on decentralized plan (DeFi) applications developed on the basis of Terra.
A poll in Telegram shows that more than 6220 users took part in the voting, while 92% were against the implementation of this approach. Some even came out with obvious criticism, expressing the opinion that such an algorithm is contrary to the spirit of the community. The lion’s share of investors even called for direct legal intervention of third parties in order to stabilize the situation.
Many crypto experts agreed that the Terra community (LUNA) is losing confidence in the startup and Do Kwon himself, and therefore cannot reach a consensus on the current issue. Investors faced serious losses, therefore, they doubt the actions of the project management.
It is worth remembering that last week the token lost 99.7% of its value. This was due to the fact that the terraUSD (UST) stablecoin untethered from the US currency and sank by 10%. Such circumstances provoked a massive outflow of investment capital from the project.
Earlier, the editors of Crypto.ru reported that the head of the hedge fund Pershing Square Management Bill Ackman made a harsh criticism of terra. He believes that startups of this kind pose a serious threat to the entire cryptocurrency community.
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