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Despite the controversy produced by the de-pegging of TerraUSD (UST), the project's co-founder Do Kwon appears to have steel nerves, remaining undeterred by the chaos. He maintains that the in-house legal team quit only because of the challenging circumstances, not because of any "shady" dealings.
Answering the difficult questions from the community
Last week, news surfaced that Terra's founder Do Kwon was facing tax evasion charges in South Korea, and speculations circulated that the company had relocated its offices to Singapore just days before the accident. When asked about it, Do Kwon said the "time was completely coincidental" and that he had been planning to go to Singapore since 2021, according to various interviews and podcasts. He stated that "we have no outstanding tax liabilities in Korea" and dismissed the charges as false rumors. According to a community member, the initiative may not donate any of the proceeds to supplement the compensation plan. This is because the corporation is "losing $30 billion this year" and has liquidated all of its Bitcoin assets except 313 BTC in a last-ditch effort to salvage UST, according to Kwon. A significant majority of users have been calling for a LUNA burn, and a community member used the Q&A session to question Kwon about his lack of enthusiasm for the proposal.
“How would I burn Luna exactly?” Kwon asked. “I don’t own the Luna millions of people are holding, and we control less than 0.1% of the supply.” However, he went ahead to provide an address for users still interested in burning LUNA to send tokens but warned that “nothing happens except that you lose your tokens.”
Claims of no wrongdoing
Despite the fact that Terra does not manage the trade logs of its trading partners, Kwon assured the audience that there was no shadiness of any type throughout the implosion.
“No VCs were allowed to cash out anything – no backroom deals of any kind exist,” said Kwon. “We are trying to see if we can name the counterparties in the trades but confidentiality will need to be waived for us to be able to do this.”
With legal and criminal litigation looming in South Korea, it's unclear how Kwon plans to salvage his creation, but he's told investors that he's undeterred.
“My priority is not about what happens to me, but making sure the Terra community has a place to build and years of their work does not go to waste. I don’t care what happens to me as long as that happens,” he said.
Terra 2.0
Last week, Kwon proposed forking Terra to create a new blockchain sans the algorithmic stablecoin UST. The Terra (LUNA) 2.0 coins will be airdropped to developers and holders, with both IBC DEX and CEX indexed in the snapshot. The Terra community has finally endorsed Do Kwon's plan to construct a new Terra blockchain without an algorithmic stablecoin. As previously revealed by ZyCrypto, the new chain will eliminate the troubled UST algorithmic stablecoin in favor of decentralized financial (DeFi) applications. The existing chain would be renamed Terra Classic, and Terra Classic LUNA holders would get an airdrop of the new network's token. Terra, in particular, will be community-owned, as Terraform Labs will not be involved in the airdrops. On Friday, the new blockchain will go online, along with the new LUNA token that will be airdropped to previous UST and LUNA investors.