The collapse of Terra, evident even at the design stage, was inevitable. The developers of the leading ecosystem protocol Anchor told JTBC on the condition of anonymity.

According to them, when developing the protocol, the calculations meant a steady rate of return of 3.6%, but a week before the start of the project, Terraform Labs president Do Kwon abandoned the idea and the bar is up to 20%.

JTBC interlocutors noted that they repeatedly warned the management about the risks and possible consequences of such a decision, but Kwon did not listen to their arguments. They also emphasized that the head of Terraform Labs alone made all the important decisions regarding the development of the project.

“Do Kwon can make people believe even the most ridiculous things. He did whatever he wanted,” said the channel’s source.

Terraform Labs’ internal documents, dated March-April 2022, fell into the hands of JTBC journalists. In these, Kwon allegedly stated to keep the rate of return at 20% even if Anchor doesn’t have enough money in its reserves to pay users.

As early as July 2021, economist Francis Coppola warned of the risks from the high rate. He noted that a sudden outflow of liquidity from the product could trigger the collapse of the product. to Kwon’s words answered“Don’t argue with beggars on Twitter”.

Earlier, FatMan analyst, citing his own sources at Terraform Labs, said that in 2020 the company overestimated the amount of funds blocked in the ecosystem to attract venture capital.

The analyst also dismissed Kwon’s claims that Terra 2.0 belongs to the community as “totally false”.

He pointed out that Terraform Labs and its president are using “shadow wallets” to support their own governance proposals. According to him, they participated in the airdrop and currently have around 42 million LUNA.

Recall that in May 2022, FatMan accused Kwon and its venture capitalists of manipulating Mirror Protocol management and defrauding retail investors.

That same month, it was learned that the DeFi project was the victim of an exploit worth more than $90 million.