Terra CEO and Ethereum CEO support Terra’s proposal to compensate ‘small wallets’
The proposal of support for the victims of the ‘Terra disaster’ was enthusiastically supported by Vitalik Buterin, co-founder and CEO of Ethereum, and Changpeng Zhao (CZ), CEO of Binance.
Posting on Twitter, an individual investor with the name @PersianCapital proposed to save Terra and small and medium investors. Specifically, Persian’s plan is to prioritize saving ‘small wallets’ (referring to small and medium-sized investors, who only hold a few thousand UST on Anchor Protocol) – accounting for about 99.6% of wallets holding UST present.
The proposal quickly received a lot of attention and support, including Mr. Vitalik Buterin, co-founder and CEO. Ethereum.
“Very much agree with this proposal. Here’s how to share and support small and medium holders – hit hard by a crazy promise of ‘20% interest on USD deposits’ from a ‘celebrity’ …”, Vitalik wrote on Twitter.
The “father” of Ethereum supports the plan of PersianCapital
For the time being, the project’s reserve fund Terra estimated to be about 1.5 billion USD. On the other hand, data from Anchor Protocol shows that there are around 256,000 wallets holding UST on the platform, with the largest 1,000 wallets accounting for 82% of the total UST supply. The smallest of these “whales” hold nearly 1 million UST, so most of the relief money from the fund would go almost entirely to the “whales” if it were to be treated equally (each UST would changed to 0.3 USD), while most users of the Terra ecosystem still suffer a huge disadvantage. Therefore, PersianCapital’s priority option of compensation for “small wallets” is considered a reasonable solution, reinforcing trust in the project and will narrow the group of whales that need to be resolved later.
Besides Vitalik, an equally influential figure, Changpeng Zhao (commonly known as CZ), the CEO of cryptocurrency exchange Binance, also voiced his support for PersianCapital’s proposal.
Specifically, Binance will let Terra compensate retail investors first. CZ even added that Binance is ready to cancel Terra’s debt in case the project side does not have enough money.
A few days earlier, CZ continued to express his disappointment with the Terra project on Twitter, even bluntly stating that the “rescue LUNA” plan using the “hard fork” technique proposed by Do Kwon, CEO of Terra, proposed as “a fantasy way of thinking”.
CZ’s public frustration with Terra received a lot of attention, because so far the CEO of Binance has always kept a neutral attitude and silently supported projects from the back, but never publicly. criticize “frankly” such a project.
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