Korean prosecutors say they have obtained a chat log in which Terra Founder Do Kwon ordered an employee to manipulate the price of Terra, according to a report from the Korean Broadcasting System.
Kwon, however, seems undeterred by the heat. He said he would hold a conference to uncover the mystery of his whereabouts. They say he is believed to have fled to Europe, and the South Korean police want his arrest. “Cops from world over welcome to attend,” he said.
And he’s ramping up his interest in Terra. He said it would be better to do nothing at all than go forward with the community’s four-year ecosystem revival plan, providing his own suggestions for the future of the protocol.
Proposed on Oct. 18, Terra Expedition aims to revive the failed ecosystem by distributing 95 million LUNA tokens from the community pool to developers, liquidity miners, and users who bridge assets to the blockchain.
Kwon dismissed the community’s proposal in a Nov. 3 post on Terra’s governance forum. “I believe the expedition proposal is a subpar spend of the community pool, and I urge the community to consider better alternatives (including doing nothing),” he wrote.
The developer, whose mismanagement of Terra dragged its volatile token, LUNA, from a market cap of $40 billion to under $200 million in May, said developers would not build on Terra without a “compelling reason”.
He argued that artificial developer incentives are “short-lived” and said allocating capital to developer grants and mining programs would not grow the ecosystem.
Kwon said it takes “almost no effort” to fork a project and start a new application, and the committee in charge of grants and rewards would not be a good judge of high quality projects. “Free market forces do much better,” he said.
Instead, Kwon suggested using the community pool to enhance inter-chain security, then subsidize Luna Staking Derivatives yields to make them more attractive than other staking assets. “Over time, the goal should be to have Luna be one of the most widely used assets for interchain security across the cosmos,” he said.
