DoKwon, TerraUSD (UST) has finally unveiled its anticipated roadmap to help stablecoins return to the $1 peg. Sharing on his Twitter account, Kwon stated that the last 72 hours have been very difficult for the Terra community, but he still believes the community will help to overcome these problems.
1/ Dear Terra Community:
— Do Kwon 🌕 (@stablekwon) May 11, 2022
With the proposed radical changes, it was proposed to increase the printing capacity to accelerate the UST absorption. Kwon also shared emergency advice 1164. The stablecoin price is currently trading 57% below the $1 level.
Do Kwon explained that due to the huge amount of capital seeking to leave the UST, there were too many LUNA sales as part of the system’s operation. When this is the case, together with the sales made Terra (Luna) The price lost nearly 85% of its value during the day.
According to Do Kwon, aggressively destroying the exiting USTs is another way to recover stability, other than by absorbing them hard. If this is completed successfully, it will again approach a stable 1:1 in USD.
Do Kwonproposed to increase the protocol’s “mining capacity” from $293 million to the equivalent of $1.2 billion: “This will help speed up the token burning process.”
Technically, the process aims to set two parameters in Terra’s (LUNA) codebase, the BasePool and PoolRecoveryBlock metrics.
By press time, 34.5% of LUNA enthusiasts voted for the proposal; Almost everyone supported its implementation. However, this change naturally seems to create high costs for UST and LUNA owners. Despite this negativity, the supply load on the UST will be reduced with the capital coming from outside to the ecosystem.
According to the community, Terra’s tragedy is very similar to the collapse of Lehman Brothers.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.