Is Do Kwon\'s LUNA Recovery Plan Working? A Deep Dive
The collapse of Terra (LUNA) and its stablecoin UST sent shockwaves through the crypto market. After Terra\'s downfall, the crypto market is struggling to recover. In response, Do Kwon, the founder of Terra blockchain, came up with a recovery plan to save the LUNA ecosystem. But is Do Kwon\'s LUNA recovery plan working? This article explores the details of the plan and its current status.
What was Do Kwon\'s LUNA Revive Plan?
Do Kwon, the developer of Terra, presented Terra Ecosystem Revival Plan 2 after the system failed. Early on, Do Kwon\'s initial proposal prioritized absorbing the UST supply. However, he later implemented an alternative idea that would restart the Terra Luna ecosystem. This revamped Terra focused on creating a new chain and distributing new LUNA tokens.
In summary, he is asking for validators on the current network to reset the network ownership of Luna to 1 billion tokens of which 40% would to Luna holders before the crash. The plan aimed to revive the network that has been hampered by the collapse of UST and, at the same time, satisfy the community.
Key Components of the Recovery Plan
- A New Chain: Creating a new blockchain, effectively forking the existing one.
- LUNA Airdrop: Distributing new LUNA tokens to existing LUNA (pre-crash) and UST holders, as well as essential app developers.
- Community Focus: Aiming to restore faith in the Terra ecosystem by prioritizing community involvement and decentralization.
Is the Recovery Plan Showing Results?
Whether Do Kwon\'s LUNA recovery plan is "working" is a complex question with no easy answer. While a new Terra chain (Terra 2.0) was launched, and LUNA tokens were airdropped, the value of LUNA remains highly volatile and significantly lower than its pre-crash levels. The community remains divided, with many feeling disillusioned by the events surrounding the collapse.
While Do Kwon, for one, is working hard to resurrect Terra, keeping the community satisfied proves challenging. Many factors contribute to this difficulty, including the loss of trust and the broader market conditions.
Future Outlook
The future of Terra 2.0 and the LUNA token remains uncertain. Success depends on rebuilding trust, fostering innovation within the ecosystem, and navigating the challenging regulatory landscape. Whether the recovery plan can ultimately achieve its goals remains to be seen.