Things were problematizing in a “War Room” During Terra Crash.
The crash of Terra Luna was an epic even of an unprecedented measure in the history of crypto. It was sudden and fast.
The investor’s wealth amounting to $40 billion was wiped out in a matter of days. Terra formed a Telegram group comprising the top network validators and team members of Terraform Labs to solve the problem. It was named “Terra Rebirth League” and the conversation started on May 12. Even this became a major struggle.
That’s according to a leak from one of the validators who pass the information to Cryptoslate. Apparently, there were a number of things going wrong in the Terra “war room” led by Do Kwon.
According to the validator going by the name THORmaximalist, the group laced proper leadership and a member opined that they should be moderated by the top 5 validators. One would have expected that Do Kwon, being the founder and controller of Terraform Labs, would have taken the reins to steer the group to a solution. That’s not what happened. To make matters worse, there was a sense of urgency for the group to reach an agreement to create a new Terra chain.
The insider validator explained,
“I think it was urgent and every day that passed by value was drifting away. Protocols were thinking about moving to other chains or starting their own L1s.
The projects on the chain are multiplicators of community value. Every single day that would have passed the multiplicator would have gone down.”
A New Stablecoin For New Luna
The conversation, while often conflicted, touched on a future plan to create a new stablecoin for LUNA 2.0. There have been rumors about Do Kwon and Terraform Labs planning this of late. According to the discussion leaked, the said stablecoin would reflect a similar stablecoin proposed in a paper by Cardano’s developer team, the IOHK. It would be an algorithmic stablecoin backed by crypto.
There Was Total Confusion
More confusion arose about when exactly the Terra blockchain was to restart the chain or not. The blockchain had earlier been shut down due to the crash. An uncoordinated restart would result in database corruption. It turns out that even after the lengthy discussion, some members were still in dark about what was happening.
Coinbase Cloud’s shot out a comment saying,
“Never seen more confusion on something this serious.”
Meanwhile, Do Kwon was all confused and asking for clarification,
“Can someone summarize the issue? I’m pretty confused.”
Interestingly, after all the plans were drawn, Do Kwon was still the guy to give the go-ahead for the restart.
More Issues After Launch
The confusion didn’t end in the war room. Terra has encountered numerous mishaps since its restart and even after the launch of Terra 2.0. The LUNA 2.0 airdrop was messy, with numerous investors getting few tokens than they deserved. A copy of the chats can be found here.
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