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Vitalik Buterin speaks out on the direction of rebuilding Terra (LUNA) and stablecoin UST

Ethereum co-founder Vitalik Buterin thinks Terra’s reconstruction efforts should focus on retail investors holding fewer USTs rather than “whales.”

Specifically, on May 14, Anthony Sassano – the writer of the popular The Daily Gwei newsletter series in the Ethereum community, tweeted:

Stop experimenting with ponzi, algorithmic stablecoins, yield farming and other unsustainable crap.
Instead, experiment with funding ‘public goods’, governance/DAO models, decentralized identity/reputation, sustainable finance, and privacy-promoting tools. That is the right direction

This statement refers directly to UST, as it is an algorithmic stablecoin backed by LUNA. In addition, yield farming, the activity of locking tokens to receive rewards, has also been criticized in recent times as nothing more than a form of “bribe” for investors to not release coins and bring nothing value. for the project in addition to delaying the selling pressure in the short term.

Immediately Vitalik replied:

Totally agree with this opinion, I would like to add that algorithmic stablecoins have become a misleading term for legitimizing unsecured stablecoins by grouping them with regulated stablecoins. guarantees like DAI/RAI and we need to emphasize that there is a clear difference between them”.

Another idea that is circulating the net is to develop a hard fork upgrade for the Terra blockchain called “TERRA 2”, while also launching a liquidity pool to bring UST back to its peg level.

However, Vitalik Buterin also shared his personal opinion about the proposal to “revive Terra” by hard fork this blockchain.

I strongly support this direction. Priority should be given to sharing and compensating small UST investors who were lured into the “send US dollars and receive 20% interest” by a famous person, this is how to accept responsibility and say sympathy from the rich.”