On-chain vote was initiated with extreme urgency
A new proposal with additional points added to those of Do Kwon first rescue plan for UST was introduced on May 12. Do Kwon is the CEO of Terraform Labs.
The proposal, named “Agora,” initiated under the number 1164 on Terra Station, is concentrated on adjustments to mint and burn parameters of UST—Terra’s infamous decentralized algo stablecoin.
The vote is currently underway, with a total of 452.31 million votes (out of 515.46 million) distributed as follows: 62% for, 36.82% abstentions and 0.57% of the votes are mixed “no” and “no with veto”.
The main points of the suggested plan are to increase the BasePool from 50 million to 100 million SDR and to decrease PoolRecoveryBlock from 36 to 18 blocks.
Due to these adjustments, the minting capacity is expected to drop from $293 million to around $1,200 million. The result, according to to the proponent, will help speed up UST exits from the system, reducing swap spreads and pressure on UST peg, but coming at the expense of the LUNA token.
This adds up to a total of of 371.29 million UST, with the total amount burned at 1,388,233,195—which is about 11% of the outstanding UST liability. In summary, TFL believes that rebalancing the pools should save the UST.
“Stop the Bleeding”
At this time, the future of the Terra community is unclear. The Luna Prize abandoned again today close to 100%, now quoting at $0.01, and UST is trading around 64% discount to major stablecoins at the $0.34 level.
However, Terraform Labs urges its followers that once the proposal for adjustments is accepted, the recovery will speed up.
They also approached the current situation as a war room and reassured readers that the “crazy people” had been working nonstop for four days trying to find a way to help injured users and “stop the hemorrhage”.
