Do Kwon, CEO and co-founder of Terraform Labs, presented a plan to resolve the situation around the crashed UST stablecoin and LUNA token.

“The Terra community must rebuild the web to protect itself and its developer ecosystem,” Kwon wrote.

At the time of writing, the supply of LUNA exceeds 6.5 billion. Due to high inflation and massive sales for several days, the price of the native token of the Terra ecosystem practically depreciated.

At the time of writing, the LUNA is trading at $0.0018566. Shortly before the crash, the price of the token exceeded $80.

The rate of the algorithmic stablecoin UST is held at $0.15.

Hoping to make a difference, Kwon proposes to restart the network with 1 billion coins to be distributed as follows:

• 40% of coins – to coin holders at the time of separation of the UST from the US dollar;
• 40% – to UST holders during network upgrade;
• 10% – to LUNA owners when the network is down;
• 10% – to the project development fund.

Shortly after the proposal was published, Kwon said he was “heartbroken” because his invention had caused so much pain to society.

“I still believe decentralized economies deserve decentralized money. But it is clear that the UST in its current form will not be that kind of money.”

Kwon reassured the community that neither he nor the organizations affiliated with him “received any benefit from the event”.

“I didn’t sell LUNA and UST in the middle of the crisis.”

He emphasized that the project team is currently working on several issues, including instructions for using the Luna Foundation Guard bitcoin reserves.

Recall that on May 8, the algorithmic stablecoin UST lost its peg to the US dollar. This happened against the background of the exit of assets from the Anchor protocol as the rate of return on deposits dropped to 17.87%.

On May 10, the asset’s quotes fell below $0.62 again. The decline continued on May 11, after which the LUNA cryptocurrency used to issue the UST fell to $0.3.

Later, Terraform Labs president Do Kwon presented a plan to restore the UST price. He called “absorption of the bid by UST holders who want to get rid of the asset” among the necessary steps.

On May 12, CoinDesk learned that Do Kwon is one of the anonymous co-founders of the failed algorithmic stablecoin Basis Cash.