The ongoing rigmarole with Terraform Labs, the blockchain developer behind Terra (LUNA), took a turn after a purported modification in job status for some members of the company’s legal staff.
The internal legal team at Terraform Labs resigned shortly after the implosion of Terra’s algorithmic stablecoin caused a significant blow to the broader crypto markets.
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BREAKING: Terraform’s legal team has reportedly resigned following the $UST crash.
— Watcher.Guru (@WatcherGuru) May 17, 2022
Abandoning Terraform Labs
Chief corporate counsel Lawrence Florio, general counsel Marc Goldich, and regulatory counsel Noah Axler have all ceased working for the blockchain startup as of May 2022, shortly after UST crashed last week, causing Terra’s native cryptocurrency LUNA to lose $40 billion in value.
It is unknown why the lawyers abandoned their jobs. No one was immediately available to comment on the situation.
The change in employment status for three members of Terraform Labs’ legal team followed extreme volatility in the cryptocurrency market when the price of LUNA plummeted to $0.00 within a week.
People are now leaving Kwon (Bloomberg.com)
Collapse Of The Stablecoins
Stablecoins such as Tether (USDT) are no longer tethered to the U.S. dollar, whilst the price of TerraUSD (UST) has fallen by more than 90 percent since May 8.
“The past week has been difficult for Terraform Labs, and a small number of team members have resigned in recent days,” said a company representative.
“The vast majority of team members remain committed to completing the project’s mission. Terra is more than UST, with an exceptionally devoted community and a clear plan for rebuilding. Our current focus is on implementing our plan to restore the Terra ecosystem,” the spokesman of Terra.
In the days following the collapse of UST and LUNA, the vocal co-founder of Terra, Do Kwon, has provided numerous recommendations for Terra’s future.
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Crypto total market cap at $1.25 trillion on the daily chart | Source: TradingView.com
The ‘Revival’ Plan
The most recent plan, “Terra Ecosystem Revival Plan 2,” was unveiled on Tuesday and entails the permanent elimination of UST and the forking (splitting) of LUNA into the “worthless” LUNA Classic (LUNC) and a new version of the coin renamed LUNA.
The plan includes an airdrop of 1 billion replacement LUNA tokens to previous UST and LUNA holders who lost a substantial investment in the coin, as well as to current LUNA holders.
11/ TFL will be initiating a governance proposal for the network fork in the next few hours – if the proposal passes, then it will coordinate the fork with validators next Friday 05/27.
— Do Kwon (@stablekwon) May 16, 2022
Even before some of Terraform Labs’ attorneys reportedly severed relations with the enterprise, several crypto users, presumably incurring big losses, demanded legal action against Kwon.
Others hypothesized that Axler, Goldich, and Florio’s prospective departure could have been the result of a moral conundrum defending Terraform Labs or worries about from where their next salary would be sourced from.
Featured image from FlexJobs, chart from TradingView.com