Ethereum’s Vitalik Buterin Supports TerraUSD Recovery Plan

You’re probably familiar with the disaster in the crypto market that has been caused by TerraUSD. Check out the latest reports involving Ethereum’s Vitalik Buterin.

As you probably know by now, the project called Terra is the main trigger of the crypto disaster we’ve all seen lately, Now, it’s been reported that the founder of this project says that he has a plan to rebuild the ecosystem.

According to the latest reports, the Terra founder Do Kwon has revealed a plan to rebuild the project’s ecosystem following LUNA’s 99% collapse from its all-time high to below $1 and TerraUSD (UST) losing its dollar peg.

It’s been just revealed that Ethereum founder Vitalik Buterin says he supports a suggestion on how to reimburse holders of TerraUSD (UST) following the massive collapse of the Terra ecosystem last week.

Originally put forth by a Twitter account named PersianCapital, the suggestion involves prioritizing the smallest holders in order to make them 100% whole after losing their funds to Anchor, Terra’s lending and borrowing protocol.

As the online publication the Daily Hodl notes, that he said: “this way, Terra’s funds would disproportionately flow to rich whales who were holding most of the UST at the time of the depeg. And you’d only be making everyone just 30% whole. In reality, most people would still feel bitter. So let’s explore the other way.”

He continued and said the following:

“The second way is to prioritize smaller wallets. People who had a couple thousand or more of UST deposited in Anchor. If Terra just focused on the ‘poorest’ 99.6% of wallets, then they could make this gigantic group 100% whole.”

Buterin says precedents for these types of recovery plans already exist, including standards from the Federal Deposit Insurance Corporation (FDIC). This has a cap on the amount an entity can claim.

“Strongly support this. Coordinated sympathy and relief for the average UST smallholder who got told something dumb about ‘20% interest rates on the US dollar’ by an influencer, personal responsibility and SFYL (sorry for your loss) for the wealthy.”