Ethereum creator: Terra needs to save small investors


 Vitalik Buterin, founder of Ethereum, said that Terra needs to prioritize saving small investors because they are lured by the "silly 20% interest" of Luna and UST cryptocurrencies.



On his personal page, Buterin cited the PersianCapital investor's proposal, saying that the Terra project should focus on reducing losses for small investors because they are accounting for more than 99% of the coin holders. UST.


"Strong support for this. Sympathy and relief needed for small UST holders who had to hear about the '20% interest' nonsense from an influencer," he wrote.


The above proposal comes after the Terra forum submitted a plan to deal with the consequences of the "luna UST disaster" by refunding those who are investing on Anchor. Anchor is the deposit platform of the Terra ecosystem, built to attract UST users with the promise of 20% interest per year.

According to statistics, there are currently more than 256,000 wallets holding UST on Anchor. Among them, 1,000 "whale" wallets are the largest, accounting for 0.4%, but owning 82% of the platform's UST. With the amount in the bailout fund currently $1.5 billion, if divided equally among UST holders, each could receive 30 cents from each previous dollar. However, according to experts like Vitalik Buterin and PersianCapital, Terra should not be divided equally, but should focus on small investors.

"If divided equally, everyone will get only 30% and most still feel bitter," PersianCapital wrote.

According to this person, the best option is to prioritize from the bottom up, which means paying small investors first. If so, 1.5 billion USD is also enough to pay 99.6% of the above investors, helping them get back their money in full. This is also a way to save "whale" investors, because when the project regains the love of the community, they will be easier to manage and develop.

In addition to Buterin, an influencer in the cryptocurrency world, CZ, CEO of Binance, also responded to the above plan. He also re-shared the article of PersianCapital and affirmed "totally support the proposal". Binance is expected to ask Terra to solve UST problems for users, before claiming benefits for themselves, because Binance is also one of the owners of a large amount of UST.

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