Terra Luna Boss, Do Kwon Wants To Create A New Blockchain, What Is It?

Founder of Terraform Labs, Do Kwon. (Photo: Doc. Forbes)

JAKARTA - The founder of Terraform Labs, Do Kwon, plans to create a new blockchain. This was done because the Terra Luna blockchain had been delisted.

In Bloomberg news, quoted Wednesday, May 18, Kwon made an upload on a research forum that said he would copy blockchain code to create a new network called Terra.

Later, the new blockchain will distribute new tokens to supporters of the previous Terra network, such as developers, those who carry out transactions on the network, as well as investors who still hold TerraUSD.

However, this plan was met with skepticism by crypto experts, including Binance CEO Zhao CHangpeng who tweeted that Kwon's idea "does not create value".

Meanwhile, General Partner at Lunatic Capital who often invests in projects built by Terra, Min Park agrees with Kwon's idea. He said that the Terra ecosystem is considered good in terms of transactional execution and maintaining low fees per transaction.

"However, we would recommend to our team not to rely on one ecosystem, this would be a great way to reduce the concentration of risk," said Zhao.

Unlike other collateralized stablecoins such as Tether, UST uses algorithms and trader incentives involving Luna coins to maintain peg dollars.

Bloomberg data mentions the entity created by Terraform Labs to defend TerraUSD's peg against the dollar, namely the Luna Foundation Guard, using USD 2.9 billion in crypto asset reserves since May 7, 2022 to stabilize the token. Many parties who lost money when TerraUSD collapsed at this time still hope for a solution from Terraform Labs.