TronWeekly

Crypto World News

You are here: Home / Archives for LUNA

LUNA

Terra Community Makes a Proposal for the Distribution Method for 0.5% Emergency LUNA Allocation

by

Cephii1, a Terra community member, proposes on behalf of the Terra community members. The suggestion is for a mechanism of distributing the 0.5 percent emergency LUNA allocation.

According to the user, the suggestion was made on behalf of community members, validators, TFL, and others. The initiative also aims to improve the Ecosystem’s Revival Plan 2.

The rising discussion over how to distribute the 0.5 percent emergency LUNA properly opened the way for the plan to grant a 10% LUNA supply to developers. However, the LUNA team did not specify how the emergency fund would be allocated.

The Terra community lays down the proposal

The user established the criteria for who is qualified to receive the emergency fund after gathering recommendations from community members:

  • Projects in LUNA Classic that achieved product-market fit and TVL.
  • Projects that began on LUNA Classic and achieved product-market fit but have yet to produce verifiable results TVL.
  • Projects in the pre-and post-launch phases that have not yet established product-market fit (pre-PMF)

The plan first focused on smaller initiatives, outlining the minimum amount needed for minor projects as well as the number of projects that should be funded.

According to the poll, the projects would cost $100-300k for six months of runway. In addition, the community chose over 50 projects that would be eligible for it.

The concept called for providing $100,000 to $300,000 in LUNA to eligible pre-PMF teams. The eligibility and allocations would be decided by a council of long-standing Terra community members, including Karma, Panterra0x, Cephii, Seb, and GJ.

In addition, the user proposed that the projects Coinhall, Terrascope, Setten, SCV, Terra One, Random Earth, Knowhere, Leap Wallet, and TFM receive an additional $500k-$1M in LUNA. This is due to the added value of infrastructure and tooling.

To sum up the emergency fund’s total of 5 million LUNA:

  • 2.5 million should be allocated among projects that debuted on Terra Classic and established product-market fit, as well as TVL (PMF and TVL).
  • One million LUNA should be awarded to ventures that debuted on Terra Classic and achieved product-market fit but no demonstrable TVL (PMF but any TVL).
  • 1.5 million LUNA should be spent on pre-and post-launch measures that failed to create product-market fit (pre-PMF).

Fakesters use LUNA 2.0 airdrops to target users

by

Scammers are giving fresh Luna 2.0 to cryptocurrency CEOs and influencers’ addresses, according to PeckShield, a major blockchain security business, including Vitalik Buterin’s, Justin Sun’s, and the 3AC Foundation’s wallets.

According to the Ethereum block explorer, the Wrapped LUNA 2.0 contract address issued millions of the new tokens and delivered them to the official addresses of Vitalik Buterin, Three Arrows Capital, Justin Sun, and other influencers. Scammers were sending the wrapped tokens to a real Terra deployer as well as airdropping them to the listed addresses, according to PeckShield.

image 5

Users were led to believe that the “Wrapped Luna 2.0” address was a legitimate Terra 2.0 token deployer, and that they must transfer their previous Luna tokens to those smart contract addresses by the exploiters.

Payments to well-known wallets, such as Justin Sun’s tagged addresses and the ENS address vitalik.eth, give the contract page credibility and attract regular users who will sell their worthless tokens for a new version.

Yet another LUNA scam

HODLers with the token (including staking derivatives) and fewer than 500k aUST (UST placed in Anchor) during the pre-attack snapshot period are eligible for the airdrop. The airdrop was also open to users who had LUNA and UST at the time of the post-attack snapshot.

Many decentralised platforms and exchanges previously resisted the upgrade either to regulatory worries or user reluctance to trade their old Luna tokens for the new one.

Terra’s co-founder, Do Kwon, proposed to “restart” the project without the UST stablecoin and a new token distribution when the UST and Terra tokens failed. Despite the fact that voting on Terra’s governance platform was successful, not all users are happy with Do Kwon’s decision and say that developers should focus on revitalising the current coin rather than creating a new one.

While some exchanges have refused to support the new Terra blockchain, many others have agreed to do so.

Terra’s UST Burn Proposal Gets the Green Light

by

All TerraUSD (UST) tokens retained in the project’s community pool, as well as UST utilized for earlier Ethereum liquidity incentives, will be burned, according to the Terra governance system.

This translates to, moreover, 1.3 billion UST, or nearly 11% of the current 11.2 billion supply, according to CoinGecko. The proposition received 99.3% of the total votes cast in favor of it. After the voting period ended, Terraform Labs, Terra’s main development corporation, will carry out the burn.

There will be two steps to this procedure. To begin, around 1 billion UST will be transferred from Terra’s communal pool to a burn module, where it will be permanently removed from the supply. The team will then manually bridge 370 million UST from the Ethereum network to Terra and destroy them, as described in a Terra governance forum explanatory article.

UST burn process will begin soon

The dollar-pegged algorithmic stablecoin plummeted from $1 to $0.04 earlier this month before resuming trading at $0.03. It is now worth 96 percent less than it was before the loss of dollar parity.

Terraform’s resuscitation plan to rebuild the Terra network and issue LUNA 2.0 tokens was approved by Terra’s governance system a day before the burn.

Earlier this month, a request to burn TerraUSD was approved. However, due to technical issues with the concept, it was never realized. According to the new proposal, “the earlier plan attempted to withdraw more from the communal pool than was available, and hence the execution failed.”

The reduction will account for about 8% of total production, perhaps bringing it closer to its original dollar peg.

The relaunched chain will go live today, followed by an airdrop of the new LUNA 2.0 coins to Terra-based asset holders. The new Terra blockchain, on the other hand, will be devoid of UST tokens, and their use will be limited to the original Terra network.

Exchanges Show Support in Assisting LUNA’s Revival by Listing the New LUNA 2.0

by

For the launch of LUNA 2.0, Huobi, Binance, FTX, Bitrue, HitBTC, and Bybit cryptocurrency exchanges, have expressed interest in working with the Terra team to launch their new chain without an algorithmic stablecoin.

Binance had previously halted trades after validators paused the blockchain, making trades impossible, but in response to Terra’s statement, announced in a tweet, “The Terra community just approved a vote to ‘Rebirth Terra Network.’

” On the recovery plan, we’re collaborating closely with the Terra team in order to provide the best possible service to impacted Binance users. “Stay tuned for more information.” On May 25, 2022, at 2 p.m. UTC, Bybit will cease LUNA and UST withdrawals, renaming LUNA as LUNC and UST as USTC on May 26, 2022, and Bitrue will commence Luna V2 trading on May 27, 2-22.

The exchanges will assist in the LUNA 2.0 airdrop

Terra’s algorithmic stablecoin UST lost its dollar peg earlier this month in a well-documented disaster. LUNA, its companion coin, crashed at the same time. In the aftermath of the Terra crash, founder Do Kwon proposed creating a new blockchain with the previous token rebranded as Classic and a new token, running on a new blockchain without an algorithmic stablecoin. On the Terra Classic blockchain, the original UST will survive.

A community pool regulated by staked LUNA classic tokens will receive 30% of the new tokens as an airdrop. At the same time, 35% will go to “pre-attack holders,” 10% to “pre-attack UST holders,” 10% to “post-attack holders,” and 10% to “post-attack UST holders,” and 15% to “post-attack UST holders.” Terra Classic block 7544910 will be used for a snapshot, whereas block 7790000 will be used for a post-attack snapshot. The airdrop will be co-hosted by Bybit and Bitrue.

Kwon had even encouraged developers to highlight the new blockchain’s support.

The Intruder Who Visited Do Kwon’s Home Speaks to the Public

by

Do Kwon is going through the worst month of his life. The abrupt demise of two popular digital coins in early May stunned investors, wiping $400 billion (£318 billion) off the value of numerous other cryptocurrencies, including the most valuable, Bitcoin. People who have lost their life savings are now begging for aid all across the world. After visiting the residence of Do Kwon at the center of the “crypto crash,” one desperate man was detained. His life was in shambles, he told BBC News.

Fortunes can be won and lost quickly in the fickle world of cryptocurrencies, but one guy in South Korea has been hit particularly hard by the May 2022 crypto crash.

thumbnail terra crashes 6 sixteen nine
Fakesters use LUNA 2.0 airdrops to target users 3

Do Kwon’s home visitor speaks up

“I felt like I was going to die.” “I lost a lot of money in a short period of time. Around $2.4m (£1.9m) of my cryptocurrency was wiped out.”

Chancers the cryptocurrency streamer

Chancers has been investing in cryptocurrencies since 2017 and claims to have amassed a fortune in the last five years as the value of Bitcoin and other digital coins has increased.

“Here in Korea I was in the top 1% in terms of my finances. But thanks to the crash, I’m now in trouble.”

Chancers told BBC News

At the worst possible time, Chancers put $800,000 into Terra Luna. Terra Luna gained notoriety in December 2021, when the value of each coin began to rise, from $5 to $116 in April of the current year.

Chancers, like many others, placed a large wager on the coin’s continued rise. However, on May 9, it abruptly plummeted, shedding 99 percent of its value in just 48 hours. Each Terra Luna coin now has a value of less than $0.0002, or two-hundredths of a penny.

Thousands of people flocked to the 30-year-old on social media for answers and a strategy to get the situation under control.

Chancers, in his despair, determined to go one step beyond. He searched online for Do Kwon’s home address in Seoul, enraged by the crypto millionaire’s lack of communication.

“I wanted to ask him about his plans for Luna. I suffered a huge loss and wanted to talk to him directly.”

Chancers

When Do Kwon’s wife opened the door and stated her husband was out, he was dismayed. Worse was to come, as he was arrested after the police were notified.

Do Kwon is putting forth every effort to resurrect Terra LUNA. The founder has proposed that LUNA be Hard Forked without any ties to UST or other algorithmic elements.

Tether CTO Says That “Terra Wasn’t a Rug Pull, Rather It Was Poorly Designed”

by

Tether (USDT) and Bitfinex chief technology officer Paolo Ardoino claimed the Terra (LUNA) initiative was “poorly designed” and not intended to be a rug pull.

Ardoino compared its algorithmic stablecoin TerraUSD (UST) to a “castle of cards” that could collapse at any time in response to the Terra ecosystem’s market-shattering disaster.

Many in the crypto world have cited a long record of suspicious statements and acts made by Terraform Labs founder Do Kwon, raising concerns about his behavior. Kwon also worked on the previously failed algo-stablecoin project Basis Cash, according to reports.

Ardoino made the remarks on the Reimagine Unplugged podcast this week, which is produced by Reimagine, a media firm that specializes in Web3 content and events. The chief technology officer indicated that Kwon’s erroneous feeling of self-confidence was a major issue:

“I don’t know Do Kwon. But let’s give him the benefit of the doubt. He created this project with arrogance and with thinking that he was right and many were supporting him, of course, probably for economic reasons, but was not per se, a rug pull, it was a project that was poorly designed as many projects are poorly designed.”

The entire crypto community is talking about Terra’s fall

Ardoino went on to say that UST had grown too big to keep its peg, claiming that its collateralization, which was predominantly in Bitcoin (BTC) at the time as it worked to create reserves, was not large enough to support the stablecoin but was “huge enough to crash the market even further.”

“They were basically in a cascade situation where they had to protect the peg, so they had to sell the collateral. Selling the collateral was generating more crashes, and these extra crashes were driving them to sell more or collateral on,” he explained.

When asked about the future regulatory landscape for stablecoins, Ardoino advised that legislators first identify the difference between stablecoins that are entirely backed by assets and those that are supported mainly by algorithms.

Terraform Labs Is Reportedly Being Sued for 100 Million Won for Tax Evasion

by

Terraform Labs has been fighting for survival as one after the other; the problems seem to pile up. According to reports, Terraform Labs faces a tax evasion fine of 100 billion won ($78.5 million) from the South Korean authorities.

Do Kwon will face charges for reported tax evasion and will have to pay a penalty of 100 billion won ($78.5 million) for failing to pay corporate tax, according to South Korean news agency Naver. Kwon was rumored to be considering liquidating the company and relocating to Singapore due to his dissatisfaction with the country’s tax policies.

Terraform Labs were reportedly trying to evade tax payments

According to the news agency, Terraform Labs was attempting to liquidate the company and relocate its headquarters to another country. Many people were suspicious of the decision, believing it was a ruse to avoid paying taxes. According to the news agency’s sources, Do Kwon was notified by the National Tax Service that he owed 100 billion won ($78.5 million) in taxes.

Ancore and Terraform Labs had been probed by the National Tax Service. Corporate and income tax evasion lawsuits were filed against the corporations.

Do Kwon also owned a 92 percent share in Terra Singapore, according to a separate inquiry. However, the company’s chairman, Shin, ignored any ties to Terraform Labs. Later, it was discovered that he possessed an 8% investment in Terraform Labs.

Last October, the National Tax Service announced an investigation into Terra Virgin, which resulted in a 4.66 billion won income tax penalty. Terra Virgin is a wholly-owned subsidiary of Terra Singapore.

The tax service also discovered that Terra Virgin and Do Kwon sent free LUNA to LFG, a Singapore-based company. Terraform Labs was nabbed in the midst of transferring LUNA to avoid paying taxes, according to the news source.

Because the corporations were regarded as domestic firms, the entire decision to levy the tax was made. Despite the fact that the companies were founded and run in Singapore, the actual administration of the companies is based in Korea.

Novogratz Breaks His Silence, Speaks About His Tattoo Following the LUNA Collapse

by

Mike Novogratz, the billionaire founder of crypto asset management business Galaxy Digital, informed his followers that his Terra (LUNA)-inspired tattoo will serve as a reminder to be humble in the venture capital sector.

Following the recent LUNA/TerraUSD crash, Novogratz wrote an open letter to his followers on Wednesday, saying, “My tattoo will be a continuous reminder that venture investing takes humility.”

Novogratz originally displayed his wolf-themed tattoo to his 461,000 Twitter followers on January 5 in a passionate statement of his support for the now-defunct Terra ecosystem.

Novogratz believes that the crypto business is stronger than ever

Last week, Terra’s TerraUSD (UST) stablecoin failed, driving the price of its sister-token LUNA from $60 to $0 in less than 72 hours. The crash cost the cryptocurrency ecosystem almost $40 billion.

“When money is lost in such a sudden fashion, people expect explanations,” Novogratz wrote in the letter.

Despite last week’s “heart-wrenching” market chaos, he believes the crypto business is stronger than ever and will not disappear anytime soon.

“This does not mean the crypto market will bottom and head straight back up. It will take restructuring, a redemption cycle, consolidation and renewed confidence in crypto.”

According to a May 13 statement from Galaxy Digital, the company expects to lose $300 million in net comprehensive income as of May 11, reducing the partners’ capital to $2.2 billion, down 12% from March 31.

Pantera Capital, one of Terraform Labs’ early investors, announced on Thursday that it had sold out around 80% of its LUNA investment well before the TerraUSD collapse. Pantera partner Paul Veradittakit claims that the firm was able to turn $1.7 million into $170 million.

Crypto-themed tattoos have gained in popularity significantly in recent years, with crypto tattoo-related Google searches increasing by 222 percent in 2021. According to Crypto Head, more than 900 people have tattoos of the Bitcoin (BTC) “B,” while Dogecoin (DOGE) and Ether (ETH) tattoos are also on the rise.

Terraform Legal Team Quits – Is It Over for LUNA?

by

After a supposed change in job status for several employees of Terraform Labs’ legal team, the ongoing saga with Terraform Labs, the blockchain developer behind Terra (LUNA), took a turn.

Terraform Labs’ internal legal staff resigned shortly after Terra’s algorithmic stablecoin imploded, causing a massive blow to the broader crypto markets.

Terraform Lab’s general lawyer Marc Goldich, chief litigation, and regulatory counsel Noah Axler, and chief corporate counsel Lawrence Florio all left the blockchain business in May 2022, according to their LinkedIn profiles. Axler and Florio joined Terraform Labs in January 2022, while Goldich started in August 2021.

A major hit for Terraform and the entire ecosystem

“Terraform Labs has had a challenging week, and a small number of staff members have resigned recently,” a company spokesperson said.

“The vast majority of team members are still dedicated to fulfilling the project’s objectives. Terra is more than UST, with a strong community and a well-defined rebuilding strategy. The Terra spokesman stated, “Our current focus is on implementing our plan to restore the Terra ecosystem.”

Do Kwon, a prominent co-founder of Terra has made various proposals for Terra’s future in the days following the collapse of UST and LUNA.

The most recent plan, known as “Terra Ecosystem Revival Plan 2,” advocates for the permanent destruction of UST and the forking (splitting) of LUNA to LUNA Classic (LUNC) and the new coin to be called LUNA.

Previous UST and LUNA investors who lost a significant investment in the coin, as well as current LUNA holders, would be airdropped 1 billion new LUNA tokens as part of the plan.

Many crypto users, possibly experiencing big losses, advocated for legal action against Kwon even before some of Terraform Labs’ lawyers reportedly terminated connections with the firm. Others claimed that Goldich, Axler, and Florio’s possible resignation was due to a moral issue while defending Terraform Labs or concerns about where their next salary would come from.

The legal staff would not be the first in the crypto world to flee a sinking ship if their departure was related to concerns about the LUNA and UST crashes. SushiSwap’s chief technology officer, Joseph Delong, resigned in December 2021, claiming “chaos” in the decentralized exchange’s operations.

Vitalik Buterin Believes That Terra Should Focus On Protecting the Small Investors

by

Vitalik Buterin, the co-founder of Ethereum, believes that any suggested payment strategy for the ailing Terra project should favor tiny hodlers.

As previously reported, the Terra ecosystem went into a death spiral on May 9, resulting in Terra (LUNA) losing its US dollar peg and the TerraUSD (UST) stablecoin losing its US dollar peg, which was valued at $0.16 at the time of writing.

With LUNA and UST investors suffering significant losses, the community is now seeking methods to repair the ecosystem and provide financial assistance to many who have been harmed.

Terra’s proposal to refund all UST holders

If the UST dollar is finally stable, one community idea is to repay all original deposits (not yield) of small UST holders initially in order to “greatly enhance overall morale and attitude” while figuring out how to segregate debtors and bigger investors afterward. It is projected that the payoff will cost between $1 billion and $1.5 billion.

On Sunday, Buterin expressed support for the proposal on Twitter, saying that the focus should be on the smaller investor who needs the money, before adding that the whale hodlers should bear the loss:

“Coordinated sympathy and relief for the average UST smallholder who got told something dumb about ‘20% interest rates on the US dollar’ by an influencer, personal responsibility and [sorry for your loss] SFYL for the wealthy.”

While the Ethereum co-founder did not advocate for regulation, he did mention that potential safeguards like bank deposit insurance may be valuable in certain situations.

It’s uncertain at this point if the project will be able to recover or whether it will attempt a brief rebound to recoup investor losses, however tough that may be. It’s also worth noting that the proposal linked to Buterin’s statements has been amended this week, and it now considers paying out all users up to a $50,000 per-wallet maximum.

Another proposal floating around the internet is to create a “TERRA 2” hard fork for the Terra blockchain, as well as a liquidity pool to restore UST back to its peg.

Do Kwon, the creator of Terraform Labs, has suggested a reorganization of the Terra blockchain in order to reset “network ownership” and give 1 billion LUNA tokens to the community.

Popular players in the crypto world, such as Dogecoin (DOGE) co-founder Billy Markus, have criticized Kwon’s planned “Terra Ecosystem Revival Plan” and have asked for him to quit the industry.