TFL Proposes Emergency Response to Counter Recent Collapse of Terra Ecosystem

-TFL has proposed burning the remainder of the UST stablecoin reserves in order to restore community trust in Terra.
-The team would like to burn a total of 371 million UST stablecoins that were deployed on Ethereum as liquidity.
-Do Kwon, Terra’s co-founder, has backed a similar proposition to burn UST and mint more LUNA tokens.
-The reasoning behind it is that burning UST would eventually restore the stablecoin’s parity to the dollar.
-However, this would come at the expense of LUNA, which would be massively diluted as a result.
-TFL’s last proposed solution is to stake 240 million LUNA tokens to strengthen the Terra network against governance vulnerabilities.
-The above emergency actions are now pending community voting.

 

 

Terra Emergency TFL Proposes Emergency Response to Counter Recent Collapse of Terra Ecosystem
TFL Proposes Emergency Response to Counter Recent Collapse of Terra Ecosystem 2

Leave a Reply