Terraform Labs Founder Kwon Proposes Increasing Basepool, Decrease PoolRecoveryBlock to Shore Up the 'Stablecoin'

Terraform Labs founder and CEO, Do Kwon, who is behind the crashing stablecoin TerraUSD (UST) and sister token Luna, has proposed a plan to prop up the flailing token on Twitter.

TerraUSD is down nearly 50% to $0.49 over the last 24-hours.

Kwon said the the price stabilization mechanism is absorbing UST supply (over 10% of total supply), but the cost of absorbing so much stablecoins at the same time has stretched out the on-chain swap spread to 40%, and Luna price has diminished dramatically absorbing the arbs.

He said before anything else, the only path forward will be to absorb the stablecoin supply that wants to exit before $UST can start to repeg.

Kwon said they endorse the community proposal 1164 to Increase basepool from 50M to 100M SDR *) Decrease PoolRecoveryBlock from 36 to 18 This will increase minting capacity from $293M to ~$1200M.

1/ Dear Terra Community:

— Do Kwon 🌕 (@stablekwon) May 11, 2022

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