20 July 2026
Terra Team Deploys Bitcoin Reserves For Rescue Plan
Do Kwon, the founder of Terra has announced the “Terra ecosystem revival plan” on Twitter. Currently, the Terra team is working on using the Bitcoin reserves of the Luna Foundation Guard (LFG) to rescue the Terra ecosystem. The aim is to save the community and developers.
He also clarified that no UST and LUNA tokens were sold during the crisis. The priority of Terra is first to preserve its L1. Additionally, he said that the community should collaborate to discuss decentralized money once the situation has settled.
There are many proposals on Agora to provide the best steps to move forward for the community. The loyal developers and holders will be compensated so that they will be able to continue providing value and support to the Terra ecosystem.
“We are currently working on documenting the use of the LFG BTC reserves during the de-pegging event. Please be patient with us as our teams are juggling multiple tasks at the same time.”
The fall of UST has destroyed investor faith in the Terra ecosystem. As of now, both UST and LUNA are trading below $1, it remains unlikely that Terraform will be able to restore value to the blockchain.
Yesterday, Kwon proposed resetting Terra’s ownership to 1 billion tokens in a bid to restore some value. Protecting the developers and core elements of the Terra blockchain is the main priority right now.
Institutions such as Three Arrows Capital related to Terra are under loss due to the LUNA and UST crisis. Also, VanEck and 21Shares suspended the creation and redemption of shares in their respective Terra ETPs.
Disclaimer: The author’s thoughts and comments are solely for educational reasons and informative purposes only. They do not represent financial, investment, or other advice.
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