The community of Terra Classic declares its independence from Do Kwon; Says LUNC 1.2% Tax Burn Author

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Terra Classic USD (USTC) is now available on Binance's cross-border and isolated margins as a new borrowable asset
Terra Classic USD (USTC) is now available on Binance's cross-border and isolated margins as a new borrowable asset

Recent days have seen a number of statements by Terra Classic influencers separating the blockchain from Terra founder Do Kwon and claiming the network’s independence and capacity to survive without help from TerraForm Labs (TFL). The Terra Classic community claims that Do Kwon, the founder of Terra, has no involvement in it.

In a tweet today, LUNC.bet, a betting service run by LUNA Classic (LUNC), presented the opinions of Edward Kim, the creator of the most recent 1.2% tax burn rate plan, about Terra Classic’s dependence on TFL. 

Kim believes that while working with TFL makes things simpler, it is also possible for the network to function without them at the expense of upsetting a number of people.

Kim wrote in the shared Discord message:

“The blockchain itself is running completely independent of TFL. The validators are the guardians of the blockchain. Interfacing with the blockchain without using the command line requires some tooling that uses TFL resources. We are working on this independence. The reality is if all TFL ‘stuff’ were wiped out, we would be fine. It would just be inconvenient for many people, but assets would be safe, and the blockchain would continue to run.” 

Kim also emphasizes similar ideas in a tweet from Wednesday in which he claims that LUNA Classic is community-driven and that no one person or organization controls the network’s course.

Additionally, on Wednesday, the unofficial LUNA Classic burn monitoring account LUNC Burn claimed that Terra Rebels had completed all recent development tasks independently of Kwon and Terra Labs with no input from them. Kwon has subsequently turned up control of the network to the community, according to LUNC Burn.

What Exactly Led to These Declarations

It’s important to note that these declarations follow reports that the South Korean government has filed an arrest order for Terra founder Do Kwon and five other TerraForm Labs members. Notably, South Korean law enforcement officials believe that LUNA is an unregistered security system and intend to detain and indict Kwon for failing to do so. 

Additionally, the Terra founder is still being looked into for potential wrongdoing that may have preceded the collapse of the Terra ecosystem.

While some, including Terra whistleblower FatMan, consider the arrest warrant to be a victory for LUNA investors who lost money in the Terra ecosystem collapse in May, others wonder whether or not the development should raise any concerns about the South Korean crypto ecosystem as a whole.

It is important to note that Do Kwon and TFL are subject to several class action lawsuits in the US and South Korea. Investors who lost money in the Terra scandal intend to pursue legal action for compensation. 

Interestingly, FatMan has joined the case being brought by Scott+Scott Attorneys and is asking others to do the same, expressing his view that Do Kwon was complicit in the actions that led to the Terra collapse.

What’s Next For Terra Classic?

Earlier this year, Terra was one of the top 10 cryptocurrency projects by market cap, largely defying the general market trend to reach new highs. But everything collapsed in May after TerraUSD (UST), now TerraClassicUSD, was de-pegged (USTC).

Kwon developed a new chain known as Terra 2.0 as a result of the incident. The community then took control of the Terra Classic network, holding onto the hope that it could bounce back. The community has therefore disclosed a bold proposal to restore the USTC dollar peg and draw users to the network.

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