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What Comes Next For Terra Ecosystem?

A group of dApp developers in the Terra ecosystem, calling themselves the “Terra Builders Alliance” have put forward a rough outline of a proposal to relaunch the project, “to honor existing UST holders, loyal Luna holders, and developers,” according to a forum post.

Other groups are considering moving apps built on the Terra chain over to other smart-contract blockchains built using the same architecture. 

The Terra Builders Alliance proposal, which has not yet been formally submitted to governance for a vote, calls for a “new luna” to be minted and distributed primarily to LUNA stakers prior to the depegging of UST, as well as those UST holders that remain so up until the new network launch. The normal governance system which relies on on-chain voting is flooded with proposals, many of which have no votes yet, so it’s unclear how the community will achieve consensus on a course of action.

Also unspecified is what, if any, role Terraform Labs and its founder Do Kwon would play in this plan. A TFL spokesperson did not immediately reply to Blockwork’s request for comment.

The proposal is the work of four prominent dApp developers on Terra — Nexus, Apollo, Astroport, Mars — however notably absent from the list is Anchor, where the vast majority of economic value on the network is stored.

“Once the UST has been swapped with LUNA at the new network launch, it will cease to exist in its current form and will be relaunched after genesis in collateralized form,” the proposal states.

Aside from launching an entirely new network, the community may consider moving their work to another smart contract blockchain — Juno — built using the Cosmos SDK, with dApps written in CosmWasm, just like Terra. The leaders of Juno are laying the groundwork for a community fund that would encourage Terra’s many dApp developers to migrate their wares over.

Another Cosmos chain that could implement permissionless CosmWasm dApps is Osmosis, known primarily as the home of the largest decentralized exchange in the Cosmos ecosystem. Co-founder Sunny Aggarwal floated the idea on Thursday in an informal Twitter poll, although early results indicate his followers are overwhelmingly against a change away from the chain’s current, “governance-gated” dApp strategy.

In the short term, there are countless stories surfacing on social media platforms of heartbreak and loss connected with this unprecedented and sudden collapse.

3AM in Germany, almost one week passed since the first depeg of $UST. How did time go by so quickly?

Talked to so many people within the space during those days. We talked, we cried, we remembered great moments. Thanks everyone

It’s life, we will move on. In & outside of #web3

— danku_r (@danku_r) May 13, 2022

Community members are gathering in various forums to share grief, counsel, and express anger and frustration.

Terraform Labs CEO Do Kwon may also be fearing for his safety, according to local Korean media, after a stranger rang the doorbell to his house, asked if he was home, and then fled.

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