During the market correction, some key Terra investors had to write off tens of millions of dollars.
Terra ecosystems have been working on a revival plan since the recent collapse. A hard fork was approved by a majority of its community members.
Terra has published an amendment to proposal 1623 and has made three major revisions in response to community feedback.
Increasing The Genesis Liquidity
Terra claims that taking this action is protecting the interests of smaller wallet holders who held LUNA before the attack. It claims to have increased the initial liquidity parameters for “pre-attack $aUST holders, post-attack $LUNA holders, and post-attack $UST holders” from 15% to 30%. This will help to keep future inflationary pressures at bay.
Pre-Attack LUNA Holders Will Get New Liquidity Profile
The new liquidity profile will provide wallets with less than 10,000 LUNA with the same genesis liquidity, which will be 30% unlocked at launch. The remaining 70% of liquidity will be released in 6-month increments over the next two years.
“Introducing this new liquidity profile ensures that small $LUNA holders have similar initial liquidity profiles,” Terra adds. This would cover 99.81 percent of $LUNA wallets while representing only 6.45 percent of total $LUNA at the time of the attack.”
Decreasing Distribution To Post-Attack UST Holders
Terra announced that it has decided to reduce the allocation for post-attack UST holders from 20% to 15%. This ensures that the de-pegged allocation remains consistent with the original stakeholder allocation.
According to Terra, the 5% difference in distribution to post-attack UST holders will be allocated to the community pool. Terra has opened voting for proposal 1623, which will close in 5 days.
The ecosystem collapse has shaken the entire crypto market. It has also proven to be one of the largest and fastest wealth erosions for crypto investors, evaporating over $40 billion in just a week.
