As the crypto industry has been engrossed in the conversation surrounding the dramatic fall of Terra (LUNA) along with its algorithmic stablecoin UST, it has become a major topic of discussion. The conservative party in South Korea has now asked for a parliamentary hearing to address this matter.
Several local news outlets reported that the Korean exchanges responded differently to the collapse, and that the National Assembly’s Political Affairs Committee had summoned the co-founder of Terraform Labs Do Kwon for a parliamentary hearing on Tuesday. A representative of People’s Power from the group, Yoon Chang-Hyeon, stated that:
Investor losses have risen as the new legislation is being delayed, the authorities continue to see huge losses from the investing public and are helpless to protect investors. 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.
Yoon Chang-Hyeon, People’s Power Party
Kwon, who has made some interesting moves following the historic depegging of the algorithmic stablecoin UST, where the token LUNA lost more than 90% of its value in a matter of days, has now tabled a plan in order to save the ecosystem.
It was suggested by Kwon Monday that the Terra ecosystem should spawn two chains. The current network should be part of “Terra Classic” (LUNAC), while the new chain should be part of “Terra” (LUNA).
According to Kwon, the two blockchains will coexist, but LUNA tokens will be rebranded as LUNAC, while LUA tokens will become LUNAC tokens. As Terra’s new chain takes its place, Terra developers will be required to airdrop new LUNA tokens to holders of the old LUNAC and UST chains, as well as developers after the plan is put into action, Kwon said.
