The co-founder of Ethereum asked that small investors recover what was invested in Terra (Luna), the defunct project, and Terra UST
while the foundation MOON issued a statement to report how much he spent to carry out UST in its collapseSeveral important figures of crypto ecosystem also expressed different views.
Last Saturday, Chang Peng Zhao Director of Binance, -also known as CZ- he stuck out his chest unexpectedly and slipped that axie infinity -the well-known game Play to Earn- handled its crisis much better than land.
However, the one that caused the biggest stir was Vitalik Buterinco-founder of the blockchain system Ethereal, than expressed concern for the affected small investors for him landslide of terra (MOON).
For its part, the Luna Foundation mentioned Twitter que: “Looking to use its remaining assets to compensate remaining $UST users, smaller holders first. Still debating via various distribution methods, updates to follow soon”.
Vitalik hopes that the assets of small savers can be recovered
Vitalik in favor of retail savers
Vitalik stated in his personal account Twitter (@VitalikButerin) who supports that land “prioritize the return of the money to the retail users”.
In this way, he hopes that the money will be returned to them. 100% of funds lost in Anchorafter the massive collapse of the terra ecosystem During last week.
Buterin slipped that one way to achieve this “would be to return, initially, $0.30 for each UST inverted in every bag.
However, in this way the whales would continue to be the main beneficiaries, since they possessed most of the UST at the time of the fall.
The problems behind the initiative
On the other hand, the measure would not leave anyone happy, since only 30% of the lost. the founder of Ethereal believes that “a second path would be to prioritize smaller portfolios; those with a little over $1,000 in UST“.
If you focus on the 99.6% of portfolios most “poor“, land could get a large group of people to be 100% happy.
On the other hand, Buterin added in his account that “precedents already exist for this type of recovery plan, including the standards of the Federal Deposit Insurance Corporation (FDIC), which has a limit on the amount that an entity can claim” .
From his account, Vitalik completed: “I strongly support this. Coordinated sympathy and relief for the average small UST owner who was told something silly by an influencer about ‘20% US dollar interest rates’, personal liability and SFYL ( sorry for your loss) for the rich”.
The obvious precedent is home insurance. FDIC (up to $250,000 per person). Another interesting precedent is the labor law of Singaporewhich establishes a stricter regulation for low-income employees and a more self-management oriented approach for the wealthiest.
CZ, CEO of Binance, stated on Twitter that he was “very disappointed” with the actions of the people of Terra and UST when managing the crisis
in a thread of Twitter CZ commented that “he contacted those responsible for land and made some suggestions on how they could mitigate the crisis.
He then highlighted being “very disappointed“with the way the people of Terra and UST “managed the entire crisis“.
CZ commented that he asked the team to “restore the network, burn the MOON minted and, in this way, recover the parity of UST”. Unfortunately, his requests received no response.
This silence contrasts with the reaction he had axie infinity after the hack to roninsince they were responsible at all times and actively communicated with all participants.