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A call for a ‘completely new chain’ to replace Terra

The operator of a major validator node on Terra is dissatisfied with the events that led to the chain’s demise and hopes that a new blockchain will be built to replace it. As the dust settles following the Terra ecosystem breakdown and the community debates what to do next, the CEO of a validator runner in South Korea believes the old Terra chain should be permanently shut down.

Jiyun Kim, CEO of blockchain solutions firm DSRV, penned an opinion piece on his own account, explaining how the Terra team dodged the issue of halting block production while Terra (LUNA) prices plummeted and the TerraUSD (UST) stablecoin was depegged. He is now urging Terra ecosystem validators to reject a hard fork in favor of a whole new community-driven blockchain.

On Terra, DSRV operates a validator node with 9.36 % of the on-chain voting power. DSRV has lost as much as any other investment because its node had accumulated 14 billion LUNA by May 8, which was worth around $1 million(R16.2M) in LUNA and is now worth roughly $3 million(R48.7M).

Kim stated that the Terra Validator League, which was dubbed the “Terra Rebirth League,” did not take the decision to halt the chain on May 12 lightly. However, he said that the Terra team failed to provide the required notification by utilizing the word “Confirm” to truly confirm with all validators that the chain should be halted, leaving him feeling “betrayed.” He stated:

“And the announcement that they made [made it sound like] the chain restart was originally the validator’s opinion. YES, they didn’t use the term ‘Confirm.’”

On Friday, Terra founder Do Kwon recommended reconstituting the chain and resetting the token supply to 1 billion LUNA. Kim appears to totally disagree with Kwon, writing in his post that reusing the Terra chain.

“The previous Terra chain should permanently vanish. And a completely new chain driven by the community should [be made to] save the Lunatics.”

There could be more to the tale, as Kim stated in his post that validator league control has been transferred to the community, providing a semblance of decentralization and potentially protecting the Terra team from additional legal liabilities. “Perhaps this can be used to limit their legal risk,” he wondered if the project was planning for impending legal challenges.

On Saturday, Wu Blockchain tweeted that a Singaporean resident has already launched a lawsuit against Do Kwon on behalf of UST and LUNA investors.

On Monday, Kim told Cointelegraph that he wants to “rescue the community,” but there is no big coordinator in victim support efforts “since there are still legal issues there:”

“I’m not a hero, but I want to save the people.”

According to CoinGecko, a sell-off of UST tokens on May 8 created a panic, causing the price of LUNA to plunge from $73(R185) to a tiny $0.000000999967 (R0,000016) on Friday. UST is severely depegged from the dollar, trading at $0.16(R2,16), while LUNA is almost worthless, down 30.8 % in the last 24 hours to $0.00026619(R0,0043).

A call for a ‘completely new chain’ to replace Terra

Nonhlanhla P Dube

Nonhlanhla P Dube is a senior news reporter at Rateweb. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her directly by email at [email protected]

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