{"id":445197,"date":"2022-05-11T14:16:04","date_gmt":"2022-05-11T11:16:04","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/terra-founder-do-kwon-shares-plan-to-save-the-ust-stablecoin-peg\/"},"modified":"2022-05-11T14:16:04","modified_gmt":"2022-05-11T11:16:04","slug":"terra-founder-do-kwon-shares-plan-to-save-the-ust-stablecoin-peg","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/terra-founder-do-kwon-shares-plan-to-save-the-ust-stablecoin-peg\/","title":{"rendered":"# Terra founder Do Kwon shares plan to save the UST stablecoin peg"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a27a9fc8e09a\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a27a9fc8e09a\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/terra-founder-do-kwon-shares-plan-to-save-the-ust-stablecoin-peg\/#%E2%80%9D_Terra_founder_Do_Kwon_shares_plan_to_save_the_UST_stablecoin_peg_%E2%80%9C\" >&#8221; Terra founder Do Kwon shares plan to save the UST stablecoin peg &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Terra_founder_Do_Kwon_shares_plan_to_save_the_UST_stablecoin_peg_%E2%80%9C\"><\/span>&#8221; Terra founder Do Kwon shares plan to save the UST stablecoin peg &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-2a0745c6>Do Kwon, CEO of Terraform Labs, will not admit defeat. After an 18-hour <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/stablekwon\/status\/1524049689510694916\">wait<\/a> in which his coins Terra (LUNA) and TerraUSD (UST) endured a face-ripping freefall, Do Kwon has announced his \u201crescue plan&#8221; for the Terra community.\u00a0<\/p>\n<p>Terra is down 90% from its all-time highs, while the \u201cstablecoin\u201d UST is 75% below the dollar parity. But have no fear, cocky Kwon has planned \u201cseveral re<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>l measures,\u201d to rescue the billions wiped off the total Terraform Labs market cap.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">2\/ I understand the last 72 hours have been extremely tough on all of you &#8211; know that I am resolved to work with every one of you to weather this crisis, and we will build our way out of this. <\/p>\n<p>Together.<\/p>\n<p>\u2014 Do Kwon  (@stablekwon) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/stablekwon\/status\/1524331172859236353?ref_src=twsrc%5Etfw\">May 11, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\nIn a nutshell, the \u201cdecentralized\u201d stablecoin protocol UST has come up with a preliminary solution to its disastrous situation where its peg to the U.S. dollar has broken. The process should reinforce the burning of UST, which so far, has been ineffective in achieving dollar parity for the stablecoin. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-05\/a90c61f8-9661-4c46-b0c0-c5c9791a5425.png\"><figcaption style=\"text-align: center;\">TerraUST wallows at less than $0.50. Source: TradingView<\/figcaption><\/figure>\n<p>In the above Tweet thread, Kwon suggested that his team will increase basepool from 50M to 100M SDR, and decrease PoolRecoveryBlock from 36 to 18. This will increase minting capacity from $293 million to around $1200 million.<\/p>\n<p>In essence, the team will mint four times more UST than <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/agora.terra.money\/t\/proposal-help-ust-pegging-increase-estimated-minting-capacity-to-1200m\/6287\">usual<\/a>. The process of creating value out of thin air has already coined a new crypto term\u2013\u201cKwontative easing\u201d\u2013or money printing.<\/p>\n<p>It\u2019s unclear why Kwon wrote \u201c$1200M\u201d rather than $1.2 billion; some Twitter commentators suppose it\u2019s to lessen the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/0xChain\/status\/1524334361327583235\">blow<\/a>\u00a0and tone down the scale of the problem.<\/p>\n<p> Adil Abdulali, Head of Portfolio Management for Securitize Capital, told Cointelegraph that \u201cUST is an \u2018algorithmic\u2019 stablecoin and is not backed by cash reserves.\u201d In a word of warning, he said: <\/p>\n<blockquote><p>\u201cUnlike other stablecoins such as USDC and Tether, UST is an \u2018algorithmic\u2019 stablecoin and is not backed by cash reserves. Comparatively, Circle ensures USDC stability with each USDCoin backed by one US Dollar, highlighting the importance of choosing the right stablecoin.\u201d<\/p><\/blockquote>\n<p><strong><em>Related:\u00a0<u>Coinbase CEO has \u2018never been more bullish\u2019 even after $430M Q1 loss<\/u><\/em><\/strong><\/p>\n<p>In spite of the Sisyphean task ahead of the Terra team, Do Kwon continues to rally the lunatics and &#8220;make noise&#8221; in support of the Terraform ecosystem:\u00a0\u00a0<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">14\/ Terra\u2019s return to form will be a sight to behold. <\/p>\n<p>We\u2019re here to stay. And we\u2019re gonna keep making noise.<\/p>\n<p>\u2014 Do Kwon  (@stablekwon) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/stablekwon\/status\/1524331196666159104?ref_src=twsrc%5Etfw\">May 11, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>If UST reaches dollar parity and Luna returns to all-time highs, it will be a solid candidate to be the most remarkable crypto comeback of all time.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/terra-founder-do-kwon-shares-plan-to-save-the-ust-stablecoin-peg\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Terra founder Do Kwon shares plan to save the UST stablecoin peg &#8220; Do Kwon, CEO of Terraform Labs, will not admit defeat. After an 18-hour wait in which his coins Terra (LUNA) and TerraUSD (UST) endured a face-ripping freefall, Do Kwon has announced his \u201crescue plan&#8221; for the Terra community.\u00a0 Terra is down&#8230;<\/p>\n","protected":false},"author":1,"featured_media":445198,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDUvYmY0NzliMWYtY2QzYS00MjRkLThhNmMtYzE1MTg5YjFiMDUwLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,75493,122378,117],"class_list":["post-445197","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-stablecoin","tag-terra","tag-business"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/445197","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=445197"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/445197\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/445198"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=445197"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=445197"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=445197"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}