The Terra blockchain’s demise is practically certain, since no one believes that UST/USD and LUNA can be rescued in any way.
But, according to Do Kwon, everything’s not lost. It alludes to the potential of rescuing the ecosystem by hard forking to a new blockchain. As a confidence-building move, the community should completely own this.
The new LUNA might therefore reclaim its previous splendor, while the now nearly useless Terra LUNA would be renamed LUNA Classic.
The voting round on the plan to construct a new blockchain has already begun and will last a week. However, Terra’s future has already been declared under less than ideal circumstances. DSRV Labs and SolidStake have already voted nay and can use their veto power.
A huge majority of the community (92 percent) opposes a hard fork. This is most likely explained by the fact that one holds out hope of retrieving at least some of the capital lost. This straw would likewise be lost with a new blockchain. One of the users commented:
“I will support the fork ONLY AFTER someone on the team explains WHY we can’t implement a burn. The majority of the community wants it and is willing to stay and support the project. I don’t understand why this is is ignored. Until then, it’s a NO”.
Mike Novogratz, the billionaire and founder of Galaxy Digital Holdings Ltd, has long been a staunch supporter of Terra. He made his first investment in Terraform Labs as early as the fourth quarter of 2020.
The investor, who is also quite active on Twitter Inc (NYSE:TWTR), has been somewhat quiet in recent days, as the Terra investment was likely one of his worst mistakes. He is no longer hopeful of a comeback:
“Reserves are insufficient to keep the UST from collapsing.” After the fact, you are always wiser.
The testimonies of tiny investors who lost their whole capital in one investment are devastating.
My tattoo will serve as a continual reminder that venture capital investment necessitates humility.