Ethereum co-founder Vitalik Buterin weighed in on the disaster that saw Terra and its algorithmic stablecoin TerraUSD collapse last week. According to him, the Terra (LUNA) project should prioritize small hodlers as part of any proposed reimbursement plan.
<h2><strong>Vitalik Calls for Prioritizing UST's Small Hodlers</strong></h2>
With LUNA and UST investors reeling from substantial losses, the community is now looking at ways to reestablish the ecosystem and potentially offer relief to the many people who gave their everything into the project.

One such community proposal includes first reimbursing all of the initial deposits (not yield) of small UST holders. According to the Twitter user, by prioritizing the bottom 99.6%, Terra could afford to return every dollar that was invested by the poorest 99.6%.

He argues that his explanation is viable as the 'VERY' vast majority of UST is held by regular people in smaller wallets.

https://twitter.com/PersianCapital/status/1525226161944506368

Buterin retweeted the Twitter user, saying:
<blockquote><em>“Coordinated sympathy and relief for the average UST smallholder who got told something dumb about ‘20% interest rates on the US dollar’ by an influencer, personal responsibility and [sorry for your loss] SFYL for the wealthy.”</em></blockquote>
<h2><strong>FDIC Could Also be Useful, says Buterin</strong></h2>
Buterin also suggested that the FDIC insurance could be useful in these circumstances. The Federal Deposit Insurance Corporation or FDIC is a federal agency that represents the first time government-backed bank deposits in US history.
<blockquote><em>“An interesting unrelated one is Singapore employment law. Stronger regulation for low-earning employees, and a more figure-it-out-yourself approach for the wealthier. IMO things like this are good hybrid formulas” he said.</em></blockquote>
https://twitter.com/VitalikButerin/status/1525562865016483841

Vitalin Buterin Calls for Relief for UST’s ‘Average Small Holders’

Ethereum co-founder Vitalik Buterin weighed in on the disaster that saw Terra and its algorithmic stablecoin TerraUSD collapse last week.

Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.

Vitalin Buterin Calls for Relief for UST’s ‘Average Small Holders’

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