Shortly after the collapse of the TerraUSD (UST) algorithmic stablecoin, members of the in-house legal team of the Terraform Labs organization, responsible for the Terra ecosystem, resigned from their positions.
An unnamed source revealed to The Block that the organization’s legal operations are now being handled by outside attorneys.
“Last week was a challenging one for Terraform Labs. A small number of staff members have resigned in recent days. The vast majority of team members remain firmly committed to fulfilling the project’s mission. Terra is more than UST, with an incredibly passionate community and a clear vision of how to rebuild,” said the spokesperson, echoing the statements of Do Kwon, founder of Terraforma Labs.
Some of the members who left their positions were Terraform Labs General Counsel Marc Goldich; corporate advisor Lawrence Florio; and legal and regulatory advisor Noah Axler.
In their profiles on LinkedIn, it is stated that the three directors left the organization in May of this year, about a year after joining the company.
According to a Terraform Labs spokesperson, the focus of the remnants is to execute the plan to revive the Terra ecosystem.
Collapse of UST and LUNA
Founded by Do Kwon and Daniel Shin in 2018, Terraform Labs is the driving force behind the Terra blockchain.
Last week, the “flagship” of the project, the stablecoin UST, lost its 1:1 parity with the US dollar. Today, it is trading below $0.14.
Soon after, billions of dollars worth of BTC were sold and a huge amount of LUNA tokens were minted to try to restore parity. But there was no success.
Then, the LUNA cryptocurrency, impacted by the ruin of UST, saw its value practically go to zero. Just over a month ago, the digital currency cost more than $100 and today it costs $0.0001881
Plans to rescue Terra and LUNA
As reported by Cryptheory, Do Kwon presented two proposals to recover the Terra network and the LUNA cryptocurrency. Both options put the community at the center of the ecosystem, providing for a distribution of 1 billion LUNA tokens.
“Plan B” also foresees a fork of the Terra network and the creation of a new chain. With the proposal, the old chain would be renamed “Terra Classic”, with the Luna Classic (LUNC) token. Meanwhile, the new chain would be called Terra, with the token Luna (LUNA).
However, Do Kwon’s plan is being widely rejected by the community. More than 90% of people who voted in a poll about the plan don’t want it implemented.
