I’d like to share the latest news about Terra (Luna), which has affected not only Korea but also the global virtual currency market and government regulations over the past 15 days. With the news that a new LUNA is 99% certain to come out, did Kwon Do-hyung really do his best to prevent the collapse of Terra? And let’s find out what Terra, who dreamed of “The 2nd PayPal,” is investigated as a fraud.
CEO Kwon Do-hyung’s Terra 2.0 proposal, “Confidently passing.”A new Luna is coming out. But the domestic listing is still. Kwon Do-hyung, CEO of Terraform Labs, has confirmed the passage of the proposal for the “Tera Ecosystem Restoration Plan” posted on Onchain on the 18th. With the launch of Terra 2.0, a new LUNA coin will be issued.
According to CEO Kwon’s proposal to Terra Station, Terra’s infrastructure service network, as of 11 a.m. on the 25th in Korean time, the approval rate was 66.97%, which is already more than half.
The total turnout is 79.8%, with about 294 million out of the 369 million Luna eligible for the Terra Governance vote so far.
Currently, 20.65% abstention, 0.34% opposition, and 12.14% veto, and the proposal passes even if all the remaining voting participants veto it. There are still about 74.53 million LUNAs that can participate in the vote, because even if all of them are vetoed, they cannot exceed 33.4% that can be vetoed. 바이비트 코리아 As a result, Kwon’s proposal will be passed at 8:17 p.m. on the 25th (local time). If CEO Kwon’s proposal is passed, a new LUNA coin will be issued at 5 a.m. on the 27th in Korean time as the new Terra chain begins. Existing LUNAs will remain Lunaclassical (LUNC), and algorithmic stable coins will not be issued on the new chain.
Meanwhile, with CEO Kwon’s proposal to “Restore the Terra Ecosystem” scheduled to be passed, major domestic exchanges say they have no plans to list the new LUNA coin yet.
In response, an Upbit official said, “Nothing has been decided about the listing of the new LUNA at this point.”
A Gopax official said, “There is no plan to list a new Luna because there is nothing specific to confirm except the token distribution plan. “Even if it is listed, it will be reviewed and listed under the same conditions as other coins,” he said.
In addition, domestic exchanges will not re-list existing Luna, which has already been delisted, even if CEO Kwon’s proposal to issue a new Luna is passed
[Source = CoinDesk Korea]
Many big names in the virtual currency industry have already decided to “just leave this board forever” on CEO Kwon’s plan. It doesn’t seem like a normal steel mentality to make Luna 2.0 when the aftermath of an algorithm-based stable coin that has already failed is not even known when it will be recovered. For now, in the case of the new Luna 2.0, Upbit says it will conduct airdrop to existing Luna holders, but you should be careful because the existing Luna will be completely suspended from the domestic exchange within this month. On the 13th, Gopax announced the delisting for the first time, and Upbit has since been delisted, and Bithumb can only trade until 3 p.m. on the 27th.
Do-kwon, did you do your best to prevent Tera from collapsing?
출처= CoinDesk KOREA
출처= CoinDesk KOREA
The prosecution announced on the 20th that it would investigate the collapse of LUNA, a virtual asset of the blockchain project Terra, and Staple Coin TerraUSD (UST. The issue of the investigation is whether CEO Kwon Do-hyung did his best to prevent the collapse of Terra.
In the blockchain aimed at decentralization, individuals, not developers, can directly or indirectly make proposals for the development of the ecosystem and vote to participate. However, on social media such as Twitter, Kwon’s proposal for Terra has a great influence on the community, so it is argued that CEO Kwon led Terra’s initial design.
In order to confirm whether CEO Kwon actually fulfilled his responsibility during the Luna and UST crashes, the details of the Luna Foundation Guard’s use of reserves must first be transparent. Luna Foundation Guard is a foundation established by CEO Kwon in January to secure reserves to maintain the $1 value of Terra USD. Luna Foundation Guard’s reserves were accumulated and consumed through external OTC, not through blockchain. In the process, six people, including CEO Kwon, managed all the funds, raising suspicions of transparency.
Lunaa Terra USD’s full-fledged plunge began on the 8th (Korea Standard Time) when the value of UST, which had to maintain a dollar, was broken below a dollar. However, during the Luna and TerraUSD (UST) crashes, Luna Foundation Guard did not immediately reveal where the reserves were spent. Luna Foundation Guard only released the details of its reserve use eight days later on the 16th.
The credibility of Luna Foundation Guard and CEO Kwon fell to the ground due to the late disclosure. On the 18th, when a Twitter user asked CEO Kwon, “Do you plan to disclose LFG’s OTC transaction records?” he replied, “It is difficult to disclose them because we have signed a confidentiality contract with the people who traded with us.” If the words of Luna Foundation Guard and CEO Kwon are true, it can be said that they were partly responsible for the collapse of Terra, but if even this is found to be false, a full-fledged battle of responsibility will take place.
In addition, it is necessary to see if Terraform Labs has properly performed its responsibilities and roles between verifiers and investors in this situation.A validator is the principal who checks for errors in the newly created block. In Korea, Hashed and DSRV are participating as Terra Blockchain Verifiers.
In general, when a decision-making proposal for an ecosystem is made, Terra Blockchain will vote for Luna Coin holders for seven days to decide whether to agree or not. However, the decision was made in the form of final approval by Terraform Labs when the verifier resolved the proposal. In other words, we chose to decide the proposal by indirect voting rather than by direct voting.
Kim Ji-yoon, CEO of DSRV, one of Terra’s verifiers, also warned that controversy over legal responsibility could arise in the process. Initially, if the verifier arbitrarily stops the Terra Block, legal responsibility problems may arise, so Terraform Labs, the developer, should operate it in the form of final approval, but CEO Kim explains that he is passing all responsibility to the verifier in the process of stopping the Terra Blockchain twice.
Finally, it is pointed out that there is also a problem with the Terra Ecosystem Recovery Plan proposed by CEO Kwon himself on the 20th. Cho Jae-woo, a professor at Hansung University, said, “I didn’t know the founder would come forward and say let’s split the blockchain in two. He said, “It is worrisome that the community does not give enough time to overcome the situation on its own and CEO Kwon is hasty in making irreversible proposals.” In other words, the proposal to separate the chain and create a new Terra before the situation could be resolved was hasty.
출처= CoinDesk KOREA
Shortly after taking office on the 17th, Justice Minister Han Dong-hoon revived the Seoul Southern District Prosecutors’ Office’s Joint Investigation Team on Financial and Securities Crimes (hereinafter referred to as Joint Sudan). The joint venture took charge of the first case of the fraud charges against Kwon Do-hyung, CEO of Terraform Labs. Investigation issues include whether there was a fraudulent intention from the beginning and whether CEO Kwon did his best to prevent damage. Attention is also being paid to how to bring CEO Kwon in Singapore.
“There have been a lot of blockchain projects so far and we’ve had a lot of money invested a lot of money. But there were no tokens in real life. We will make tokens for real life.” (Shin Hyun-sung, former co-chairman of Terra) September 14, 2018 Upbeat Developer Contest Speech)
“(Tera’s) Defi (Decentralized Financial Services) service, Anchorptorocol, can pay up to 20% interest per year. This (Tera) is the best steppercoin, not to mention.” (Kwon Kwon-hyung, CEO of Tera) Tweet 2 days before the release of Anchor Protocol on March 15, 2021)
“It’s really painful because of the fact that my invention (Tera) caused pain to everyone.” (CEO Kwon) Tweet May 14, 2022)
This is the main remarks of former CEO Shin and CEO Kwon on the Korean blockchain project Terra. There is a trend from the official launch of Tera in April 2019 to the recent Mola. And if you look at this, you can see that Terra was a very different concept for both of them, and that’s going to be the issue of the investigation. A former prosecutor said on the 24th, “The final goal of this investigation is to determine who will be criminally responsible, so it will be important to determine when Terra became dangerous.”
Terra’s history is becoming more important because of public opinion. With the downfall of Terra’s virtual assets LUNA and Stablecoin UST, the media suspect that the entire process of Terra was not fraud from the birth. The controversy over the exchange’s “blind listing” is also a task to be explained.
The only thing former representative Shin and Kwon have in common is that they used Luna. Former CEO Shin wanted to create a virtual asset payment ecosystem in partnership with 15 domestic and foreign e-commerce companies. In order to increase the use of Terra Stable Coin there, we tried to give 0.5% of the payment fee to Luna holder for each Terra payment. At that time, we wanted to grow our trading base (ecosystem) at a fee much lower than the existing payment agency’s fee of 2-3%.
On the other hand, CEO Kwon kept the value of UST constant with a finely woven programming code (algorism) instead of real life.