As the effect of the Terra USD (UST) losing its peg to the dollar continues to take its toll, the circulating quantity of Terra's LUNA has surged by over 1.9 million percent in the last seven days. The circulating supply of LUNA was roughly 342 million seven days ago, according to data shared by crypto analyst Ali Martinez. So far, the circulating supply has increased by 6.18 billion, bringing the total to 6,531,899,614,602 LUNA.
The #Terra team increased $LUNA circulating supply by 1,908,651.08% in a matter of days, from 342,167,457.21 to 6,531,125,222,828.44 #LUNA.— Ali Martinez (@ali_charts) May 15, 2022
… And you’re telling me you’re throwing some money at it because prices have a good chance of recovering????
Bruh ?♂️ pic.twitter.com/Plq3bugPG7
The LUNA token collapsed to virtually zero in the last week, while the UST stablecoin has completely lost its peg, presently trading at $0.08. The LUNA token has lost 100% of its value in the last seven days, triggering the creation of more. At the time of publication, LUNA was trading at $0.000226.
Do Kwon to "restart" Terra
Over the weekend, Do Kwon, the founder of Terraform Labs, proposed a "Terra Ecosystem Revival Plan" in a post on a Terra-related forum, which amounts to a restart of the whole Terra blockchain, with network ownership distributed fully to UST and LUNA holders via 1 billion new tokens. The CEO also acknowledged that the Terra ecosystem had completely collapsed.
Forty percent of the new tokens will be distributed to LUNA holders, who owned tokens before the de-pegging event, with another 40% allocated pro-rata to UST holders. The remaining 20% will be distributed to LUNA holders who held at the end of the chain's halt, and the community pool, which will be used to fund future development.
With this approach, Kwon hopes to encourage existing members to stay on board after the project's failure. Terra's UST stablecoin, which was supposed to be pegged to the dollar, "death spiraled" in the past week, wiping out billions of dollars in value.