– Ethereum founder Vitalik Buterin said that any attempts by Terra to repay its holders should be deployed towards the most vulnerable of its holders.
– Buterin called for Terras developers to shift their recovery efforts towards UST holders who werent whales, but rather smaller, retail investors.
– The ETH founders comments were in response to a thread by Twitter user @PersianCapital, which highlighted that most of USTs supply on Anchor Protocol, which was ground zero for the stablecoin crash, was concentrated towards whale holders.
– @PersianCapital references a Terra governance proposal that moots using the blockchains $1.5 billion Bitcoin reserves to return some degree of value to UST holders.
– Such a plan would entail that whales, which make up roughly 82% of all UST holders, would get a much larger share than smaller, more vulnerable holders.
– The Twitter user suggested that instead, the $1.5 billion could be deployed more towards repaying smaller wallets- the poorest 99.6% of all UST holders by value.
– Buterin echoed this sentiment, stating that vulnerable Terra holders deserved a bailout more than their wealthy counterparts.