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Some users noted that making adjustments should be accompanied by a new vote.
What happened? Terraform Labs CEO Do Kwon has made changes to his proposal to restore the Terra blockchain during the voting process. Kwon proposed to change some parameters of the fork in terms of the distribution of coins, reports The Block.
Information on The Block website
How did events unfold? After the collapse of the TerraUSD (UST) stablecoin, Do Kwon announced a plan to restore it, in which he proposed to create LUNA (LUNA) 2.0 tokens on a new blockchain. Today, Kwon made changes, despite the fact that the original proposal is already being voted on. While the idea of restoration remains valid, Kwon said he has changed several distribution parameters “based on community feedback.”
What adjustments did Kwon make? The first change is aimed at reducing the distribution of LUNA 2.0 tokens among UST holders who bet their tokens on Anchor when the asset value collapsed. Their share of distribution was reduced from 20% to 15%.
Kwon then proposed to increase the initial number of free LUNA 2.0 tokens from 15% to 30%, and the remaining 70% would be blocked for a two-year period. Previously, the ratio was 15% and 85%, respectively. Anonymous analyst Terra FatMan stressed that making changes to the proposal should be accompanied by a new vote.
What events have happened before? On May 16, Do Kwon suggested that the community conduct a hard fork of the network to restore the Terra ecosystem, but users rejected this initiative as a result of a preliminary vote. And on May 17, it became known that the in-house lawyers of Terraform Labs began to leave the company.
On May 19, South Korea’s Internal Revenue Service accused Do Kwon and terraform Labs, a company he founded, of evading income and corporate taxes worth more than 100 billion won ($78.4 million).
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