Do Kwon, one of the co-founders and a major decision-maker of the Terra blockchain, has been summoned by the South Korean Conservative Party for a parliamentary hearing, following the fall in the value of both the native token of the blockchain, LUNA and its native programmable stablecoin, UST.
This news comes after Kwon announced another plan to restore the ecosystem. As told by Kwon, Terraform Labs will put forth a new governance proposal on May 18 to fork the Terra blockchain. According to him, the new chain will not be linked to the TerraUSD (UST) stablecoin. He also mentions that the old Terra blockchain will continue to exist with UST and will be called Terra Classic (LUNC). Under Kwon’s plan, if passed, the new LUNA blockchain will go live on May 27.
The announcement of Kwon’s summon was made by a South Korean local news page and it explained that the National Assembly’s Political Affairs Committee today is summoning Terraform Labs co-founder Do Kwon for a parliamentary hearing regarding the issue.
What you should know
- According to the report, Korean exchanges responded differently to the collapse.
- The committee’s representative, People’s Power’s Yoon Chang-Hyeon stated, “There is a part that raises questions about the behavior of exchanges during the crash. Coinone, Korbit and Gopax stopped trading on May 10, Bithumb on May 11 stopped trading daily, but Upbit did not stop trading until May 13.”
- He also noted that “as the legislation is delayed, investors’ losses are increasing, the authorities continue to see the huge loss of investors and are helpless to protect investors.”
- He further suggested that “We should bring related exchange officials, including Terra CEO Kwon Do to the National Assembly to hold a hearing on the cause of the situation and measures to protect investors.”
- Following the historic depegging of its algorithmic stablecoin, UST, and the subsequent death spiral that plummeted LUNA tokens to practically nothing, Kwon has tabled a plan to save the ecosystem.
As previously reported by Nairametrics, Kwon suggested that the Terra ecosystem be forked into two chains, with the current network known as “Terra Classic” (LUNAC) and the new chain known as “Terra” (LUNA).
He explained in a Twitter thread that both chains will coexist, but the old tokens will be rebranded as LUNAC while the new ones will be known as LUNA. The launch of the new chain will necessitate that Terra developers airdrop new LUNA tokens to holders of the old LUNAC and UST, as well as developers after the plan, is put into action, Kwon added.
