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Terra admits to facing technical issues in resuming LUNA and UST transfer 

Terra admits to facing technical issues in resuming Terra and UST transfer
TL;DR Breakdown
  • Terra team faces problems in unlocking the transfers of LUNA and UST between IBC chains
  • Do Kwon, the creator of Terra, claims that sending LUNA to Burn Address will destroy your tokens.

Early Monday, Terraform Labs team admitted to facing roadblocks in re-enabling a transfer function for LUNA and UST, which was temporarily stopped to save users from further losses during the debacle.

After the UST stablecoin lost peg, the network’s IBC (Inter-Blockchain Communication) channels were closed to prevent impermanent loss of UST and LUNA pools on IBC DEXs, including Osmosis. Basically, users were unable to move UST and LUNA across the IBC chains because the function was stopped.

Now, the team said it’s facing roadblocks in resuming transfers on IBC chains. Although a recent effort, through Proposal 1299, to resume the function passed did not execute properly. 

“We are aware of the issues associated with this proposal & are working on getting the IBC channels open for users as soon as possible,” Terraform Labs.

Terra CEO doesn’t support burning LUNA

The LUNA and UST are still battling the negative pressure that has been weighing down their market for quite some time.

Do Kwon and the Terra team have been working to restore the ecosystem. The practice of burning surplus tokens in order to create demand has been suggested as a way to halt the fall in LUNA’s prices. Do Kwon, on the other hand, appears hesitant to do so.

In a recent tweet, the Terra creator attempted to defend his concerns about burning LUNA. To burn the excess coins and save the crypto’s price that has been in the gutter since the crash began days ago, Kwon was reacting to the pressure put on him by the Terra community. 

Kwon has now published the burning address after numerous people demanded to view it.

The Terra community has been demanding that Do Kwon and the Terra team burn LUNA for days. Critics, including Binance CEO, have criticized Do Kwon and his team for failing to take advantage of the reserves to support the price during the onset of the crush. The CEO of the exchange added that Do Kwon should have burned LUNA instead of producing more.

The Terra team is working on a solution

Meanwhile, discussions continue about how to prop up Luna’s value. Terra’s founder Do Kwon has suggested executing a hard fork to create a new Luna chain with new tokens that would then be airdropped to affected investors.

The new chain will not be linked to UST, according to the Constitution. While the community was initially against the proposal during the early voting round, it was backed by critical stakeholders. As of publication, UST is priced at around $0.066.

Ibiam Wayas

Ibiam Wayas

Ibiam is an optimistic crypto journalist. Five years from now, he sees himself establishing a unique crypto media outlet that will breach the gap between the crypto world and the general public. He loves to associate with like-minded individuals and collaborate with them on similar projects. He spends much of his time honing his writing and critical thinking skills.

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