- The whole system’s failure has wiped out the ecology and shattered its trustworthiness.
- A situation where no multisig is involved is strange and hazardous.
Theory, loss and response are only some of the reactions to Terra’s extinction. Because of the failure, many thought that this one was doomed. Tether’s Chief Technology Officer (CTO) also criticized Terra’s design. The burning procedure is invalidated for all intents and purposes since Do Kwon is in charge of the wallet being burned. LUNA expose thread by Jack Niewold exposed some of the project’s most critical problems.
“BURNED’ LUNA DOESN’T GET BURNED Previously if you swapped UST for LUNA, it would burn LUNA. NOW, if a user creates UST, some percentage of the LUNA is used to buy BTC. Obviously, this creates inflationary price pressure on LUNA.”
Famed “Kill Switch” Emerges
Aside from hurting the value of Luna, he also found it strange that the burn mechanism was employed to market sell and then purchase BTC. That, according to Jack, is not at all deflationary. While Do Kwon’s private wallet has LUNA, a situation where no multisig is involved is strange and hazardous. The whole system’s failure has wiped out the ecology and shattered its trustworthiness. Recently Do Kwon tweeted that nothing happens when investors send LUNA to burn wallets, and they only lose tokens at the end.
To clarify, as I’ve noted multiple times i dont think sending tokens to this address to burn tokens is a good idea – nothing happens except that you lose your tokens
Want there to be no confusion whatsoever https://t.co/GrzG9cclAr
— Do Kwon 🌕 (@stablekwon) May 23, 2022
Do Kwon, the inventor of Terra, discusses the famed “kill switch” in two old clips making the rounds on social media recently. According to Do Kwon, Terra will fall bankrupt because of a “Protocol Armageddon,” as heard in the unearthed films. In an older video, he said the squad could “pull the trigger and in 24-hours we’re gone.” He added that “we burn all our assets, we cut all of our ties, and its (Terra) nothing.”