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Terra creator Do Kwon proposes official vote to ditch his failed stablecoin and create a new blockchain. Its community isn’t happy: ‘I lost a million dollars in UST because of you’

May 18, 2022, 2:12 PM UTC

Terraform Labs CEO Do Kwon has officially put forth a governance proposal for community members to vote on his idea to ditch the UST stablecoin and create a new blockchain. 

“Terra governance prop #1623 to rename the existing network Terra Classic, LUNA Classic ($LUNC), and rebirth a new Terra blockchain & LUNA ($LUNA) is now live,” Kwon wrote on Wednesday, adding a prompt for people to vote. 

Kwon is proposing a hard fork plan, where the existing Terra blockchain would split into two blockchains. The current chain and the new chain would exist at the same time but operate differently. 

The new chain, according to Kwon, would ditch the TerraUSD (UST) stablecoin that crashed below $1. It would instead use cryptocurrency Luna. Currently, Luna’s value is near zero due to UST’s wild “depeg” last week

Though Kwon mentioned that his proposal has “broad support” from Terra “builders,” tagging 15 accounts, more than 6,220 community members opposed the change in a previous poll after Kwon initially floated his plan on Monday.

On the Terra forum on Monday, many community members posted negative reactions. But Kwon’s plan is winning support in early voting on Wednesday. At time of publication, 89.65% have voted yes in the live vote, while 0.28% voted no, and 10.07% voted no with veto.

One member criticized Kwon’s proposal as “one of the dumbest ‘rescue plan[s]’ ever.” Another added that it “looks like a really bad idea.”

“You could have stopped the chain and then just stopped trading. Investors’ lives are in shambles. I will never support anything you do again. And I am in disbelief at your audacity,” a user wrote on the forum. “I lost a million dollars in UST because of you. I trusted you.”

If his plan ultimately passes, Terraform Labs will coordinate the creation of the new chain with validators on May 27, Kwon said on Monday. 

UST is currently trading at 11 cents, down 85% in the last seven days. Luna remains down 100% in the same timeframe.

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