With the devastating crash of Terra (LUNA) and depegging of TerraUSD (UST), along with the whole market downtrend, the crypto investors seem to take a sensible and thoughtful approach.
Was Terra collapse already planned?
Terra story took a dramatic turn when some legal documents showed the liquidation of two offices of Terraform Labs in South Korea, days before the now-failed stablecoin UST collapse.
As per a recent report by the local news outlet Digital Today, the document has been obtained from the nation’s Supreme Court Registry Office. The paper highlights how Do Kwon successfully implemented the liquidation of two offices and an entire company.
During a general shareholders meeting on April 30, both the Busan headquarters and the Seoul offices were planned for liquidation, with their dissolution taking place on May 4 and 6, respectively.
The timing of these decisions has sparked concern among crypto enthusiasts due to their possible link to the events that led to the complete financial annihilation of the Terra (LUNA) and UST stablecoin in the early hours of May 10.
Terra is now putting into action a revitalization plan based on the second amendment of Proposal 1623’s governance, as TheCoinRise reported. If passed, it will make three changes to the current system: increasing genesis liquidity from 15% to 30% to “mitigate future inflationary pressures,” implementing a new liquidity profile for pre-attack LUNA holders, and reducing funding to post-attack UST holders.
1/ We have published an amendment to Proposal 1623, incorporating the community’s feedback since its publication 2 days ago. Please see below for details ?https://t.co/liISBn3Baa
— Terra ? Powered by LUNA ? (@terra_money) May 20, 2022
With a network launch scheduled for May 27, Kwon stated in the proposition paper that “$UST peg failure is Terra’s DAO hack moment — a chance to rise up anew from the ashes.”
South Korea has shown a tough and responsible stance toward the situation. As TheCoinRise reported, the regulators in the country are monitoring exchanges following Terra’s collapse. Moreover, the watchdogs have already fined Terra Labs and its co-founders $78 million for tax evasion.