21 May Terra Under Heat After Amending Proposal Mid-Vote
Currently, the market is experiencing one of the most painful weeks this year, and it was exacerbated by Terra’s crash.
While Terra’s ecosystem boss, Do Kwon, has been putting forward revival plans, he also amended one. But more importantly – he did so while the proposal 1623 was being voted on.
Titled ” Rebirth Terra Network,” Kwon revealed that he modified the proposal to accommodate community feedback.
He also asserted that if a user has already voted but disagrees with the new modifications, they can still vote “No.” Users have a few more days to change their vote.
The first revision increases genesis liquidity. The initial liquidity parameters have been bumped up from 15% to 30%. Terra says that this measure aims to increase token supply at launch and mitigate future inflationary pressures for pre-attack aUST holders, post-attack LUNA holders, & post-attack UST holders.
The second revision introduces a new liquidity profile for pre-attack LUNA holders. Wallets with less than 10K LUNA will have the same genesis liquidity, 30% unlocked at launch. while the rest, 70% of liquidity, will be locked for a two-year vesting period.
The third change is involved in decreasing distribution to post-attack UST holders. Allocation for post-attack UST holders will be reduced from 20% to 15%.
What irked many in the community was the fact that Terra went on to make these changes in the middle of an on-chain vote.
One of the users tweeted,
“Agreed, wtf is this. How can you amend something already voted for…. Hey guys, we half way through the vote, you voted, buuuut, we changing what you voted for… No more faith, luna will crash no matter what they do…”
Terra’s credibility has been questioned several times. But the mid-vote changes have further strained the confidence of investors who have still held on to LUNA in hopes of recovery.
At the time of writing, more than 79% voted in favor of the proposal, while around 15% voted “no with a veto.” The proposal will be discarded if the latter percentage crosses 33.4%, even if it receives approval from the majority of validators.
Kwon continues to be under heavy scrutiny as the life savings of many investors vanished in a matter of days.
Recently, official records revealed that Kwon had reportedly dissolved Terraform Labs Korea, shutting its headquarters and the only branch in Busan, days before the collapse of LUNA and UST.
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