According to Ethereum co-founder Vitalik Buterin, Terra’s leadership should focus on protecting small investors, not “whales”, as part of indemnification.
Recall that last week the Terra ecosystem collapsed after the UST stablecoin decoupled from the US dollar. In just a few days, the price of LUNA dropped from $80 to $0.0002. The community hopes to restore the ecosystem, and the leadership of Terra plans recover at least part of the losses.
Vitalik Buterin supported the refund initiative, but stressed that investors with small amounts should be prioritized over large holders of UST or LUNA.
“There should be a coordinated refund for smaller UST holders who were attracted by the 20% USD income claims. It is a personal responsibility and a loss (we regret it) for the rich. In the current situation, an analogue of FDIC deposit insurance in the United States would help. Or, another example from Singapore, where low-income workers are much more protected than richer people. I think something like this can be applied in cryptocurrencies, – wrote co-founder of Ethereum.
Previously, it was proposed to restart the Terra network and distribute 1 billion LUNA among users. However, according to the CEO of the Binance cryptocurrency exchange, Changpeng Zhao, this will not work.
Source: Bits
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