Is Do Kwon Rigging Terra 2.0 Proposals with Shadow Wallets? Allegations and Controversy
The collapse of the Terra ecosystem, featuring the UST stablecoin and LUNA token, sent shockwaves through the cryptocurrency world. In the aftermath, Do Kwon, the founder of Terraform Labs and the person behind the UST and LUNA tokens, has put forth a plan called the 'Terra ecosystem Revival Plan 2' wherein he proposes a new blockchain, Terra 2.0, and a new LUNA token. However, this plan, and the subsequent governance votes, are shrouded in controversy, with allegations of manipulation and the use of shadow wallets.
A key concern revolves around whether Do Kwon is unfairly influencing the governance process through hidden wallets. Fatman accuses the founder of Terra, Do Kwon for allegedly operating shadow wallets, even when the team went on to promise that specific wallets like Luna genesis wallets would be excluded. These accusations raise serious questions about the fairness and integrity of the voting process for the new Terra 2.0 blockchain.
The initial governance vote on Do Kwon's proposal to relaunch the Terra blockchain and create LUNA 2.0 tokens has passed, paving the way for the creation of a new chain. But with persistent rumors of shadow wallets influencing the outcome, doubts linger about the legitimacy of the vote and the long-term viability of Terra 2.0.
A week after the Terra ecosystem explosion that plunged the market into total panic for several hours, Do Kwon, the founder of Terra, presented a proposal to relaunch. This proposal aims to create a new LUNA token and distribute it to those affected by the crash. However, critics argue that this approach doesn't address the fundamental flaws that led to the initial collapse.
Furthermore, Do Kwon’s troubles double up as expose links him and TerraForm Labs (TFL) to multiple shadow wallets with 42 million LUNA. Do Kwon’s troubles with the Terra community extend beyond the initial collapse and accusations of manipulating governance votes. The alleged existence of these shadow wallets fuels suspicion and undermines trust in Do Kwon's leadership.
While the proposal is geared towards compensating small wallets and traders, who some argue are the ones who have been disproportionately affected in this crash, many within the crypto community remain skeptical. The complex distribution mechanisms and the potential for manipulation through shadow wallets continue to be a major point of contention.
The allegations surrounding Do Kwon and the alleged use of shadow wallets raise fundamental questions about transparency and accountability in the Terra ecosystem. As Terra 2.0 moves forward, addressing these concerns will be crucial for building trust and ensuring the long-term success of the project, if success is even possible. The future of Terra remains uncertain as the investigation into Do Kwon's actions continues.