The cryptocurrency market is continuing to experience a downturn, with Bitcoin and other major cryptocurrencies showing losses. However, the biggest issue of concern is the ongoing crisis with UST and Terra Luna. People are unsure whether to sell their tokens as the situation unfolds. A new proposal has been put forward which is currently being voted on. The proposal involves forking the Terra chain into a new chain without the algorithmic stablecoin, UST. The old chain would be Terra Classic and the new chain would be Terra, with the token being Luna. Pre-attack token holders will receive compensation, but with significant restrictions on unlocking tokens. The community is largely unhappy with the proposal and is advocating for a ‘burn Luna’ approach to save UST.
The Crypto Market is Down Again Today
The market is down four percent at 1.25 trillion dollar market cap and most of the market is in the red, including Bitcoin. The biggest gains of the day include chilies and infinity, with few others barely making it above break even.
Ust and Terra Luna Crisis
The crisis with Ust and Terra Luna is still happening with people unsure of what to think or whether they should sell their tokens. Today, they’ve come up with a new proposal that’s being taken to a governance vote right now.
New Proposal for Ust and Terra Luna
Previously, it was proposed to burn Luna to save the peg for Ust. However, the current proposal is to fork the Terra chain into a new chain without the algorithmic stable coin. The old chain would then be called Terra Classic and the new chain would be called Terra with the token being Luna. This proposal has caused a lot of controversy with Ust and Luna holders unsure of how to proceed.
The Voting Process
The vote is currently ongoing with validators getting assigned votes based on their size. The vote needs a quorum of 40 percent and there’s a total of 376.71 million votes that could be placed. Currently, 89% have said yes to the proposal, while 8.28% have said no with a veto.