Luna Recovery: Will Luna Recover Terra Luna’s recovery plan after 100% wipeout


Luna Recovery: Terra Luna’s recovery plan after 100% wipeout Do Kwon Reveals Terra Luna Recovery Plan?

Holders are left wondering if a Luna recovery is feasible following the crypto catastrophe that saw Luna and TerraUSD plummet.

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Do Kwon, CEO of Terraform Labs, proposed a Luna recovery strategy to help stabilize the present crypto wreckage. This comes amid rumors of a Luna delisting and trade restrictions on exchanges such as Wrapped Luna.

Here's a look at the Luna recovery plan suggested by Kwon, which has been dubbed one of the largest cryptos collapses ever, with Luna dropping over 99.9% and UST losing its peg.

Do Kwon Reveals Terra's Recovery Plan for Luna

After first suggesting a Luna recovery plan that prioritized absorbing the UST supply, Do Kwon has now proposed an alternate strategy that would re-establish the Terra Luna environment while focusing on preserving the UST supply.

Kwon released a Luna fork suggestion in his current Terra Ecosystem Revival Plan on the Terra Research Forums. This has been completed.

It promises a big shakeup that entails rolling Luna back through a hard fork before the crash, similar to the TerraBuilderAlliance's Luna Go Forward Proposal. This would result in a new Luna, leaving Luna Classic behind (LUNC).

A fresh Luna with a 1 billion supply would be distributed here. Pre-attack Luna holders would receive 35% of this Luna, while current Luna holders would receive 10%. Pre-attack UST holders would receive an additional 10%, while current UST holders would receive 20%. The remaining 25% would go to a communal pool, with 10% set aside for development.

Kwon shifted his initial attention from UST to Luna in a prior Twitter exchange. "I continue to think that decentralized economies need decentralized money – but it is evident that UST in its current form will not be much money," he stated.

In his prior proposal, Kwon stated, "Terra needs a community to continue to flourish and make its backspace useful again." "The only way to achieve this is to ensure that token holders, who were the most dedicated community members and builders before the attack, stay around to continue generating value."

Of course, this is only a suggestion, and without Terran community agreement, it may never happen. On May 18, a vote on Kwon's proposal is scheduled. If all goes well, the new network will go live on May 27.

However, according to a preliminary Terra Luna poll on Terra Station, 92 percent of the community is opposed to a possible fork.

A Luna burn is an alternate road to a Luna recovery offered by certain Luna holders. They expect that by deleting a large portion of the circulating supply, the price will rise without the need for a fork.

Is Luna Getting Better?

Luna's price has not restored to its previous level, but it has climbed from its all-time low. The price of Luna is $0.00017 at the time of posting, down 99.9% in the previous seven days but still over 17,00% higher than its low. Luna's price was roughly $80 at the start of May, for reference.

Luna's price has dropped 6% in the last 24 hours after starting to stabilize over the weekend.

Luna's market capitalization has recovered to $1 billion, down from $20 billion on May 9. While this is still a decline of almost 90%, it is a far cry from the $58 million market value it had in May.

One cause for the significant decline in Luna's price is the circulating supply. On May 12, approximately 13 billion Luna were in circulation, up from 343 million previous to the catastrophe. This has increased to 6.5 trillion Luna as of May 13.

While Kwon said that the "UST peg failure represents Terra's DAO hack moment - a chance to emerge afresh from the ashes," this renewed revival has yet to materialize.

Is UST Getting Better?

The UST has yet to rebound, and the TerraUSD stablecoin is currently falling farther from its $1 peg.

It's currently worth $0.09, down 89 percent in the past week. However, it is still above its May 13 low of $0.04.

The UST rebound, which would see the stablecoin repeg to $1, suddenly appears to be less likely. While Kwon's first recovery plan appeared to place a high priority on UST repeg, the community appears to disagree.

Instead of blaming UST for Luna's demise, they chose to focus on Terra Luna and the Layer-1 first, before rescuing UST.

If the Terra community accepts a UST recovery plan, the formerly algorithmic stablecoin may need to embrace certain collateralization aspects.

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