Is $LUNC a community owned blockchain? Or is it a security product issued by TFL?

Erizabesu Katsura
In support of community autonomy for Terra Classic

Terra Luna Classic price dropped over 99.99% from all time high. Now showing a sign of market bottom on the weekly chart.

While much of the outside world believes the Terra Luna Classic blockchain is dead, hopeless of any meaningful recovery, especially after Terraform Labs (TFL) under the leadership of Do Kwon “bailed out” themselves with a new genesis blockchain, plus disproportional priorities in token air drops for special interest groups; the $LUNC community on the other hand, displayed enormous resilience and strength through integrity, resourcefulness, and hard work. All for the common goals of reviving $LUNC with functioning governance and utilities, and re-peg $USTC with a revised, reliable defense mechanism.

For weeks following the catastrophic crash of Terra, countless $LUNC community members came together and supported the blockchain. The developers, volunteers, and members from the Terra Rebels (TR) community has been working tireless to revive the chain. They split into teams and took care of the various aspects of a blockchain ecosystem. Proposals were discussed and passed on governance. Community outreaches were done with increasing participations from exchanges, validators, and social media influencers. And finally, the software update for $LUNC is ready, v0.5.21 as published on GitHub. This is the most important update in the history of Terra Classic. As it will be re-enabling the long-awaited investors rights to stake, governance, and potentially setup new validators. On top of that, a 1.2% burn tax signaling the community determination in handling the “bad debt” left from the TFL administration.

A successful implementation of v0.5.21 on $LUNC will prove that community autonomy exists within the Terra Classic network. Otherwise, based on the actions, or the lack thereof, of Do Kwon, TFL and any of its supporting individuals and entities (which includes validators acting against v0.5.21), Terra Classic could be considered a security product issued by its “owner” TFL. Therefore, making the “official management team” liable for any investor’s losses during the May 2023 crash, where almost 45 billion dollars of investors asset were wiped out, individuals and families destroyed, some of whom committed suicide.

Critics have accused TR of attempting to takeover / attack the network. However an argument of “attack” or “takeover” of the network is impossible to be made, without assuming the network has a legitimate owner, capable of trampling over community decisions. This is the same as, customers from the Apple products community could not legally assume authority over the business decisions of Tim Cook, the CEO of Apple Inc. Owning the retail products of Apple Inc. does not guarantee the buyers any rights in the management of the company. Does $LUNC shares the same underlying context? Is TFL the “owner” of Terra?

If the above assumption of ownership is true, then by being the issuer of a security product, and managing the day-to-day operations of such product(s), Do Kwon and anyone under his leadership and/or financial influence (TFL & validators), has a fiduciary duty to the investors (or customers whichever you might call it) of Terra Classic.

A fiduciary duty exists in law when a person or entity places trust, confidence, and reliance on another to exercise discretion or expertise in acting on behalf of the client. The fiduciary must knowingly accept that trust and confidence.
A breach of fiduciary duty occurs when a principal fails to act responsibly in the best interests of a client. The consequences of a breach of fiduciary duty are multiple. They can range from reputation damage to loss of a license and monetary penalties.
– Investopedia

In the presence of fiduciary duty, Do Kwon and TFL employees has a legal responsibility to act in the best interest of $LUNC holders, until such duty is publicly renounced and legally withdrawn. Which can be done by publicly stating their resignation of all authorities over and related to Terra Classic. Starting a new genesis blockchain with the same name, and acting nonresponsive to urgent community inquiries, will not alleviate any of the legal obligations.

I hope this opinion piece can help to provide insight into better ideas of handling the unfortunate crash of the original Terra. Instead of endless name calling, bashing, and meaningless fights. Let the community move forward in a constructive way. It is in my opinion that, TFL and validators has a duty to make sure the v0.5.21 update of $LUNC are done in the most efficient manner possible without delay. The community wishes will be respected, in the best interest of everyone involved.



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