Ethereum is a smart contract platform that enables developers to build tokens and decentralized applications (dapps). ETH is the native currency for the Ethereum platform and also works as the transaction fees to miners on the Ethereum network. Ethereum is the pioneer for blockchain based smart contracts.
Terra is a decentralized financial payment network that rebuilds the traditional payment stack on the blockchain. Luna is the reserve currency of the Terra platform. It has three core functions: i) mine Terra transactions through staking, ii) ensure the price stability of Terra stablecoins and iii) provide incentives for the platform’s blockchain validators.
Terra USD (UST) is an algorithmic stablecoin that is pegged to the US
The founder of Ethereum, Vitalik Buterin, backs TerraUSD’s (UST) repayment plan that prioritizes small investors.
Since last week, the crypto ecosystem has been suffering from the effects of the plummeting stablecoin a cryptocurrency with extremely low volatility, sometimes used as a means of portfolio diversification. Examples include gold-backed cryptocurrency or fiat-pegged cryptocurrency. Terra USD (UST) . Since then there has been nothing but talk about it and many people have complained about lost all their savings invested there .
Today, the Luna Foundation broke the silence and reported how much he spent to pull UST through its collapse . However, his attempts were unsuccessful.
Against this backdrop, several major figures in the crypto ecosystem have spoken out. On Saturday, the CEO of Binance Changpeng Zhao, CZ, quien assures that Axie Infinity handled its crisis much better than Earth .
Priority to the little ones
One of the things that the Luna Foundation por Twitter is that: “ The Foundation seeks to use its remaining assets to compensate the remaining users of $UST , smallest headlines first . We are still discussing through various distribution methods, updates will follow soon”.
Faced with this information, the founder of Ethereum, Vitalik Buterin, says he supports a suggestion on how to reimburse the holders of EarthUSD (UST) after the massive collapse of the Terra ecosystem.
Originally submitted by an account an account is essentially a whose purpose is to track the financial activities of a specific asset/ of Twitter call PersianCapital, the suggestion involves prioritizing smaller holders so that they are 100% whole after losing their funds withAnchor, the lending and borrowing protocol the set of rules that define interactions on a network, usually involving consensus, transaction validation, and network participation on a blockchain. of Earth.
He said thus:
“One way would be to return, say, USD$0.30 for every UST invested in each wallet.”
But this way, Terra’s funds would flow disproportionately to the rich whales who had the lion’s share of the UST. And you’d only be topping everyone off by 30%. In reality, most people would still feel bitter. So let’s explore the other way.
The second way is to prioritize smaller wallets. People who had a couple of thousand or more UST deposited in Anchor. If Terra only targeted the 99.6% of the ‘poorest’ wallets, then they could make this gigantic group 100% complete. “.
PersianCapital says that the benefit of prioritizing smaller wallets is that they can be would be that more people would be reimbursed for 100% of their losses. which he says is “fairer” and would improve community sentiment. He also says it would be easier to manage the remaining group of wealthy whales after dealing with retail investors.
Bien, dice Buterin
Buterin says on Twitter that there are already precedents for these types of recovery plans, including the standards of the Federal Deposit Insurance Corporation (FDIC), which has a limit on the amount an entity can claim.
“I strongly support the opposite of Resistance, it is a threshold that crypto’s price doesn’t fall below. this. Coordinated sympathy and relief for the average UST small homeowner who was told something silly by an influential person about “20% interest rates on the U.S. dollar.” personal responsibility and SFYL (sorry for your loss) for the rich.
The obvious precedent is FDIC insurance (up to $250,000 per person). Another interesting precedent is Singapore’s labor law. Stricter regulation for low-income employees and a more self-management oriented approach for the wealthier.
In my opinion, things like this are good hybrid formulas”.
The obvious precedent is FDIC insurance (up to $250k per person)
An interesting unrelated one is Singapore employment law. Stronger regulation for low-earning employees, and a more figure-it-out-yourself approach for the wealthier.
IMO things like this are good hybrid formulas. pic.twitter.com/25XkfE8UVc
— vitalik.eth (@VitalikButerin) May 14, 2022
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