I just read the whole Revival plan by the terra team regarding forking the current chain, dividing it into two tokens called Luna Classic, and Luna. How are we going to get compensated? Is there hope for the current Luna to recover?
Who is getting compensated and how? Do I have to move all my coins to station?
I am a noob so please help me out.
Don’t have the technicals but high level:
- There’s a problem with the blockchain side. It’s affecting people who build and have projects on it (financially)
- There’s a problem with existing UST holders who lost significant value due to the depeg.
- There’s a problem with existing LUNA holders who lost significant value due to the depeg.
- There are problems with staking.
- There are confidence issues with the eco.
- There are trust issues with Do Kwon.
- CZ has given a course of action that appears to be getting ignored, thus making the confidence and trust issues worse.
- There’s the matter of BTC that could be used to salvage things but isn’t and nobody really knows why not (smoke).
- There are newer investors who bought the significant dips and got enriched, or ones who bought major whale-sized bags at the all-time low price where they might ape out if it significantly jumps.
Summary: there are a lot of issues where what it looks like Do Kwon wants to essentially do is completely reset and start anew with a fork, similar to how Ethereum Classic was forked into Ethereum to later thrive as Ethereum.
With the questions you’re asking, there aren’t answers. Thus the proposals.
The burn would seem to make everyone whole except for possibly developers.
The fork would seem to make developers happy but harm investors.
That’s at least our read - which may be inaccurate. There’s a lot to unpack with this fiasco.
It’s a lot simpler than the previous poster said.
You’re not getting compensated, because there’s no money left in the system.
You basically hold casino chips in a casino that went bankrupt and now the casino company is promising to open a new casino and give you new chips for the old ones, but since they’re still bankrupt, those new chips will be close to worthless as well. It’s just smoke and mirrors.
The current Luna also has no hope of ever recovering for the same reason - there’s no money left in the system.
Whoever wanted to buy Luna has already done so and they’re now broke - their money was used to defend the UST peg in a futile attempt, as there was never enough demand for Luna to support a 15+ billion $ stablecoin.
The LFG entity which held some (mostly BTC) reserves to back the system claims it already spent 98% of its reserves too, so it’s also broke.
Do Kwon probably made a hefty personal gain out of this, maybe a couple hundred million $, but that too is nowhere near enough to bail out a system that would require several billion $s even for a refund of the smallest wallets (and well over 10 billion $ for a full restoration).
So in short, there’s no hope for anyone to be made whole, because there’s no money left in the system.
UST was a stablecoin minted without adequate backing. It grew to a size of 18 billion $, when the total money which backed it in Luna/BTC was roughly 3-5 billion $. When UST holders tried to cash out in size, the reserves were exhausted and the scam revealed.
I’m sorry to say, but it was inevitable.