Terra | Official Confirmation of Legal Team Departure, Korean Senator Calls for Hearing, Do Kwon Community Q&A Compilation

Terraform Labs was reported to have its legal team resign after the token collapse, with external lawyers currently handling related business. In addition, the new proposal put forward by founder Do Kwon has a support rate of less than 10%, and South Korean ruling party lawmaker Yoon Chang-hyun has requested a parliamentary hearing summoning Do Kwon regarding the LUNA collapse incident.

Terra Legal Team Resigns

According to sources familiar with the matter cited by The Block, three legal executives at Terraform Labs have resigned in May, less than a year after joining the company. A spokesperson from Terraform Labs confirmed the departures to Decrypt:

• General Counsel Marc Goldich
• Chief Corporate Counsel Lawrence Florio
• Chief Litigation and Regulatory Affairs Counsel Noah Axler

Liu Feng, founder of Chain News, stated on Twitter that Marc Goldich was still tweeting about his passion for LUNA and the community on 5/10 and 5/11, only to leave a few days later.

New Proposal Support Less Than 10%

Terra founder Do Kwon released the second version of the Ecosystem Revival Plan on 5/17 in the early morning "Terra Ecosystem Revival Plan 2", outlining a fork that does not include a new algorithmic stablecoin on the old chain renamed Terra Classic LUNC and a new chain as Terra LUNA.

Community member morpheus9 initiated a preliminary vote on the v2 proposal, believing that waiting for the formal voting process was a waste of time and instead sought to gauge overall sentiment towards the proposal. As of now, 5,332 people have voted, with a strong 92% opposition to the fork proposal.

Do Kwon Engages with the Community

Despite the collapse of LUNA, Do Kwon, who has mostly been incommunicado, has started responding to community questions on Twitter. Here are some of the exchanges:

Westie: I don't like this proposal, even those who bought in at 0.1 USD for fun can get the same airdrop as those who held UST and lost their savings during the entire drop.

Do Kwon replies: We can also take snapshots at an earlier timeline and average them with the final snapshot, giving higher weight to earlier snapshots for airdrops.

florido: Will LFG use funds to compensate UST retail holders? Let's put aside the fork and snapshot for now.

Do Kwon replies: Yes, we are trying to devise the best solution.

CryptoAddie: Millions of investors bought LUNA at 0.00003 USD after the crash, will they also receive the airdrop?

Do Kwon replies: Yes, they will receive the airdrop. We are in talks with major exchanges, and holding UST or LUNA on exchanges will also result in receiving the airdrop.

Pentoshi: Why is there such a severe decoupling, but BTC to UST is still at 0.95 USD, did you buy UST with BTC through OTC trading?

Do Kwon: LFG uses every Bitcoin to market buy UST at the prevailing price. Market makers often split it into OTC contracts or loans, that's how the OTC market operates, it's quite common.

PersianCapital: UST decoupled, and you are shouting that Terra is not just UST? UST in Anchor is the most popular application in the Terra ecosystem, and UST holders are waiting for you to solve the problem.

Do Kwon: What I want to emphasize is that even without UST, Terra has an ecosystem worth protecting. I believe we will focus on innovating in areas that have not received attention in the past.

Markus: Why did Terraform Labs step down when the community needed it the most? And turn Terra into a "community chain"?

Do Kwon: We will continue development.

South Korean Lawmaker Calls for Hearing

According to an exclusive report by South Korean media NewsPim, ruling party lawmaker Yoon Chang-Hyeon has requested the summoning of Do Kwon for a parliamentary hearing on the LUNA collapse incident.

This includes questioning the timing discrepancies in asset delisting by South Korea's four major exchanges during this event:

• Trading halted on 5/10: Coinone, Korbit, Gopax
• Trading halted on 5/11: Bithumb
• Trading halted on 5/13: Upbit

Yoon Chang-Hyeon stated that despite the token's plunge, exchanges were able to profit from it. Upbit, with an 80% market share, followed suit three days after other exchanges suspended trading, earning nearly 10 billion KRW in transaction fees.

He urged that delaying relevant legislation would lead to more losses for investors and called for the summoning of Do Kwon and executives from other exchanges to hold a parliamentary hearing on the causes of the incident and to push for related investor protection policies.