Faced with the disaster of Terra (LUNA), Vitalik Buterin takes a stand

Vitalik to help small investors – Last week, the Terra Luna ecosystem was at the center of the news after depeg its stablecoin UST. This break in parity with the dollar caused the fall of the LUNA token and the loss of billions of dollars for investors. Faced with these losses, management is trying to get compensation for the affected investors. For his part, Vitalik Buterin is on the side of small carriers.

Did Terra Luna investors get a refund?

In parallel with the collapse of UST and the LUNA token, many chilling evidence were placed by investors who lost everything. Not surprisingly, it was small and medium portfolios that suffered the most from these losses.

So, on May 11th, a community member posted a proposal through the Terra Luna management module. In practice, this aims to return USDC to all UST holders up to a certain limit using LF funds (Luna Foundation, editor’s note) and preferring small wallets ».

“The events that have taken place over the past few days have deeply affected all of us, and I am sure we agree that small and medium-sized investors have been hit the hardest. Families lost their livelihoods, students and professionals lost years of savings, and smaller “investors” even lost other people’s money. »

To do this, it is proposed to carry out this compensation in 3 stages:

  • Take snapshot UST holders up to depeg ;
  • Calculate the amount needed to repay 75% of the smallest walletswhich should be no more than 1 or 1.5 billion dollars;
  • Make a reimbursement list. This will allow these wallets to exchange their UST for USDC or USDT at a 1:1 rate.

After much discussion, this proposal was finally considered. Now he offers return all wallets.

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Vitalik Buterin advocates reimbursement of small depositors in Terra Luna case

Obviously, many influential players in the ecosystem took part in the discussion. So, on Saturday, May 14, the co-founder of Ethereum, Vitalik Buterinalso expressed his opinion on the matter via Twitter.

So he announced support firmly “this is a proposal. According to him, it is necessary that coordination of assistance to small investors in the UST ».

Position of Vitalik Buterin.
Position of Vitalik Buterin.

To justify his stance, he explains that many investors turned to UST after seeing influencers push ” 20% interest rate on USD “. More than a tempting promise.

At the same time, Vitalik Buterin is campaigning for ” personal responsibility for the rich ”, namely the lack of reimbursement for large wallets, rather to implement a risk management strategy. The latter then uses the example of Singaporean labor law which suggests:

“Stronger rules for low-income workers and more individualized treatment for the more affluent. »

From my side, Luna Foundation Guard it looks like he has other plans to revive the Terra Luna ecosystem.

Obviously, this offer does not apply to users who are affected by this crash. For example, the protocol Venus on BNB Smart Chain Lost $1M in Crash after a bug in the Chainlink oracle.

Update : Luna Foundation guard contacted his cash flow. BTC reserves are almost liquidated in an attempt to maintain the UST’s $1 peg, according to the tally. This may affect the loss compensation plan for small shareholders.

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