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The CEO of Binance, Changpeng Zhao, is against the proposed Terra Luna fork.
The Terra Luna fork is the recovery plan for the Terra ecosystem. Terraform Labs CEO Do Kwon posted the recovery plan to the Terra Research Forum, and it suggests the creation of a new Terra chain without an algorithmic stablecoin – i.e. no more Terra USD.
Do Kwon revealed a new token will be distributed to Luna holders, UST holders, and UST holders – but the Binance head has already shared his disapproval against this 'final' Terra recovery plan.
Changpeng Zhao has been vocal on Twitter following the Terra Luna crash.
Initially, he halted trading of both Luna and Terra USD (UST) to protect traders from the collapse of both. Terra USD is the algorithmic stable coin at the heart of the Terra ecosystem – soon to be called Terra Classic – and after de-pegging from its $1 price has crashed to a current price of $0.09877.
The price of Luna is currently $0.000181 and down from over $80 at the beginning of May.
Do Kwon's recovery plan for Terra would see a new Luna token distributed among affected parties – but the Binance CEO would prefer to see a massive buyback and burn of existing Luna tokens to recover the current Terra ecosystem.
Changpeng Zhao Tweeted:
"The last few days, we tried hard to support the Terra community. In my tweets, I am simply pointing out the potential issues from my understanding. Minting, and forking, don't create value. Buying back, and burning does but requires funds. Funds that the project team may not have."
EverGrow Coin is the leading hyper-deflationary token in the Binance ecosystem.
The project – which launched in September last year – has a built-in mechanism to every month buyback and burn EverGrow Coin tokens from the market to reduce the overall supply and raise prices.
To date, EverGrow Coin has burned more than 52% of its original supply – meanwhile there are 6.5 trillion Luna tokens currently circulating the crypto space.
EverGrow Coin burns EGC tokens by collecting 2% of every transaction and keeping it back for strategic, monthly buyback and burns. The next EverGrow Coin burn is expected to destroy 0.5% of supply, which will register as a buy on crypto price trackers and permanently reduce the overall supply.
Whether the Binance CEO promotes an EverGrow Coin-style buyback and burn – where taxes on Luna transactions are held back for burns – or a massive buyback and burn using existing resources is not yet clear.
The Terra Ecosystem Revival Plan has seen a recent update and is currently marked as UPDATED and FINAL. Do Kwon has been active on Twitter this week re-posting all the Terra validators who have pledged support for the proposed Terra Luna fork.
The proposal is due for a governance vote on May 18, and if successful would go live by May 27.
The new Luna token distribution would be as follows:
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