Terra Under Heat After Amending Proposal Mid-Vote

Currently, the market is experiencing one of the most painful weeks of the year, and this was further aggravated by Terra’s crash.

While Terra’s ecosystem boss, Do Kwon, is rolling out revival plans, he also amended one. But more importantly, he did so while Proposition 1623 was being voted on.

• Titled “Rebirth Terra Network”, Kwon revealed that he revised the proposal to accommodate community feedback.
• He also said that if a user has already voted but disagrees with the new amendments, they can still vote “no”. Users have a few more days to change their vote.
• first Amendment Genesis increases liquidity. The initial liquidity parameters have been increased from 15% to 30%. Terra says that the measure aims to increase the token supply at launch and reduce future inflationary pressures for pre-attack aUST holders, post-attack LUNA holders, and post-attack UST holders.
• The second amendment introduces a new liquidity profile for pre-attack LUNA holders. Wallets with less than 10K LUNA will have liquidity of the same origin, 30% unlocked at launch. While the balance, 70% liquidity, will be locked for a vesting period of two years.
• The third change consists in reducing the distribution after the attack on UST holders. The allocation for UST holders will be reduced from 20% to 15% after the attack.
• Many in the community were outraged that Terra made these changes in the midst of an on-chain vote.
• one of the users tweeted,

“Agreed, WTF it is. How can you amend something that’s already been voted for…. Hey guys, we’re halfway to the vote, you voted, buuuut, we’re changing what You voted… believe no more, Luna will crash no matter what they do…”

• The reliability of Terra has been questioned several times. But the mid-vote change has further strained the confidence of investors who still hold onto LUNA in hopes of a recovery.
• At the time of writing, over 79% voted in favor of the proposal, while about 15% voted “not with a veto”. The proposal will be rejected if the latter percentage crosses 33.4%, even if it receives approval from the majority of validators.
• Kwon has come under heavy scrutiny as the life savings of many investors vanished within days.
• Recently, official records showed that Kwon reportedly dissolved Terraform Labs Korea, closing its headquarters and only branch in Busan, a few days before the collapse of LUNA and UST.