Terra Set out a detailed & Compelling Recovery plan. Terra are working around the clock and say there maybe more steps to come.

Collapsed Terra Luna release recovery plan

Terra Set out 9 Steps to Recovery

first steps to recovery Luna terra

Firstly the prevailing peg pressure on $UST from its current supply overhang is rendering severe dilution of $LUNA.

 

There primary obstacle is expelling the bad debt from UST circulation at a clip fast enough for the system to restore the health of on-chain spreads.

 

2/ To expedite this goal, several measures are being taken. First, the current Prop 1164 will expand the base pool size and accelerate the burn rate of UST – helping deflate on-chain spreads.

 

3/ TFL is also initiating three more emergency actions:

1. Proposal to burn the remaining UST in the community pool.
2. TFL will burn the remaining 371 million UST cross-chain on Ethereum.
3. TFL just staked 240 million $LUNA to defend from network governance attacks.

 

4/ You can find the full Agora proposal for burning the remainder of the community pool UST in the link below, including the proposal to burn the cross-chain UST. The vote will go live shortly.

https://t.co/jALjY5T4uM

 

5/ TFL will port the remainder of the UST deployed as liquidity incentives on Ethereum (371 million UST) over the past few months back to Terra and burn it all using the burn module pending the result of the governance proposal.

 

6/ TFL is currently exploring the best avenue to burn the remainder of its UST holdings, much of which has been accrued in recent days to absorb the sell-offs of UST in various open markets.

 

7/ Overall, approximately 1,388,233,195 will be eliminated from the UST supply upon executing the three proposed items above. This equates to roughly 11% of the outstanding supply.

 

8/ Expelling the system’s bad debt with the above items should help restore the on-chain swap spreads to a meaningful level where the peg pressure on UST is significantly alleviated. Once the new base pool proposal passes, this will also expedite the process.

 

9/ Please note that TFL is in the war room and has been non-stop for the past four days working on solutions and potential avenues to help affected users and stop the bleeding.

Publicly, we will continue to release updates as developments unfold.