The developer behind LUNA and UST Terraform Labs isn’t getting it any easier as the situation has gotten worse by the day. The piling problems have made it hard for Terra to pick up the remaining pieces and mount a push again. The latest setback to the Do Kwon-managed Terra builder is news that came out earlier this week, indicating that its legal team called it quits following the implosion.
Terraform Labs’ internal legal team resigns following ecosystem crash
What seems to be an anticipation of potentially intense legal questions around the fall of algorithmic stable coin UST might have led to Terra’s internal legal team walking away. The LinkedIn profiles of chief litigator and regulatory counsel Noah Axler, general counsel Marc Goldich, and chief corporate counsel Lawrence Florio now indicate they all left the company this month.
While the reason for resignation remains officially undefined, a spokesperson from the company acknowledged that a few team members had left the firm in the last few days. The majority, however, remain dedicated to rebuilding the post-UST Terra. The Block reports that currently, legal matters pertaining to the blockchain builder are being handled by outside counsel.
Despite being caught between a rock and hard place, Terra remains ambitious to rise again, but only time will tell.
Also, this week, a local news outlet reported that a lawmaker in South Korea – Do Kwon’s home country – wants the CEO summoned to a parliamentary hearing to explain the UST/ LUNA washout.
Major validators clash with the community over TFL CEO’s fork proposal
Determined to keep Terra afloat, Do-Kwon recently set forth a proposal for Terra to rise from the ashes. Poll figures, however, indicate that it will take Terra a lot to flip the current negative sentiment around the blockchain, or rather its lead tokens.
In a Twitter thread published yesterday, Terraform Labs CEO Do Kwon introduced a new proposal suggesting Terra blockchain forked into two – Terra Classic (Luna Classic token, LUNC) and a reborn Terra (LUNA).
Before the governance vote was opened today, the Terra co-founder posted a call to action that saw positive reaction from main validators on the network, committing to support the renewed Terra chain. All of Nexus Protocol, SCV Security, Aperture Finance, Valkyrie Protocol, Stader Labs, THORchain.bull, Angel Protocol and many other validators voiced their support.
However, the community hasn’t matched this enthusiasm, as it’s leaning on remaining loyal to Terra as it is. Smallholders within the Terra community have criticized the proposal, with most insisting on burning the over-minted LUNA to bring value back to the token and its holders. This direction of action was part of the first proposal introduced by Terra.
The idea against forking is that it would likely benefit the whales of the Terra ecosystem while retail holders are left at a loss.
The path ahead remains to be seen as most of the validators that have committed to support a new Terra have a significant amount of governance power, and according to vote data, it seems the outcome is already leaning their way. At the moment, five hours into voting, 22.86% of the total votes have been cast, and 91.10% of them are in support of Terra’s rebirth, 0.27% have sided against it, and 8.64% submitted ‘No with Veto.’
According to a preliminary vote conducted on Terra’s research and governance forum, 92% of 6,420 voters are against the idea of forking, indicating that the 91% in support isn’t reflective of community sentiment on the proposal.
Notably, should 33.4% of the vote go with the ‘No with Veto’ option, then the proposal would be dropped. As of the time of writing, only blockchain solutions firm DSRV, whose chair Jiyun Kim recently called for a complete halt of the old chain, has chosen the option.
The post The Latest on Terra: Terra’s Legal Team Reportedly Resigns as Debate on Terra Fork Proposal Takes Heat appeared first on Securities.io.
