Terra fork will not work, according to the CEO of Binance
Terra’s aim to split the blockchain, according to Binance CEO Changpeng Zhao, would not succeed since it will bring no value.
Zhao remarked in a tweet on Saturday that “this won’t work.” “Forking does not add any value to the new fork. That’s only a fantasy.”
Earlier this week, Terraform Labs founder and CEO Do Kwon suggested a strategy for Terra’s rebirth after the company’s demise last week. According to his plan, Kwon proposed constructing a new Terra blockchain and issuing 1 billion Terra coins as a reward to all stakeholders.
In order to protect the Terra community and the developer environment, Kwon urged the Terra community to re-establish the chain.
However, producing money, in the words of Zhao, “does not produce value.” Basically, it “dilutes the current coin holders.” A “bootstrap mechanism” is all incentives are, according to him.
Zhao also enquired about the whereabouts of the Luna Foundation Guard’s bitcoin holdings. No, those BTC should first be used to repurchase UST. he inquired.
More than $1.2 billion in bitcoin reserves are still missing, according to a report from The Block on Friday. In order to help UST, it built up over $2 billion in bitcoin reserves and granted a $750 million loan in the digital currency. There is still a lot that hasn’t been accounted for. Additionally, there are still 9,658 bitcoins missing, with a market value of almost $288 million at the time of writing.
At the end of last week, Zhao claimed he was “extremely upset” with Terra’s handling of the crash of the stablecoin TerraUSD and its linked token Luna (LUNA).
When UST’s peg to the US dollar was broken, LUNA was under tremendous pressure to maintain its pricing. Because of the way the two tokens interacted, this resulted in a massive supply rise in LUNA and a price fall.
Terraform Labs’ $32 million seed round in 2018 was co-led by Binance Labs. Coinbase Ventures, Polychain Capital, Pantera Capital, and Hashed are just a few of Terraform’s major backers.