Vitalik Buterin believes Terra should prioritize retail users when it comes to returning money lost on Anchor.
Ethereum founder Vitalik Buterin has expressed his support for Terra on Twitter Prioritize refunding retail users. This way, they hope to get back 100% of the funds lost in Anchor, following the massive collapse of the Terra ecosystem last week.
Buterin noted that one way to achieve this would be to initially return $0,30 for each UST invested in each wallet. However, this way the whales would still be the main beneficiaries, as they held the majority of the UST at the time of the crash. On the other hand, this measure would not make anyone happy, as only 30% of what was lost could be recovered.
The founder of Ethereum believes that a second way would be to prioritize smaller wallets; those with just over a thousand dollars in UST. If you focus on the 99,6% of the “poorest” wallets, Terra could make a large group of people 100% happy.
In short, by prioritizing small wallets, more people could get a 100% refund of what they lost. For Buterin, this would be the “fairest” thing to do and would help improve community feelingFinally, it would also be easier to manage the remaining group of whales by taking a more “sorry for your loss” approach.
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On this, Buterin points out that similar recovery plans already exist, including Federal Deposit Insurance Corporation (FDIC) rules, which limit the amount an entity can claim to about $250.000 per person. Another example would be Singapore's labor regulations, which have stricter regulations for low-income employees and a self-help-oriented approach for the wealthiest.
CZ is not happy with Terra's management
On the other hand, Changpeng Zhao, CEO of Binance, has shown Dissatisfied with the way Terra has handled the collapse of the LUNA ecosystem and the UST stablecoin.
In a Twitter thread CZ explains that he contacted Terra officials and made some suggestions on how they could mitigate the crisis. He then noted that I was “very disappointed” with the way the people at Terra and UST had managed the entire crisis.
CZ notes that they asked the team to restore the network, burn the minted LUNA, and thus restore UST's peg. Unfortunately, The requests received no response.
This silence contrasts with the reaction that he had Axie Infinity after the Ronin hack, as they took responsibility at all times and actively communicated with all participants.
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