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Terra’s legal team resigns after LUNA and UST fall – News

The legal team at Terraform Labs, a blockchain startup associated with stablecoin UST and governance token LUNA, has resigned. The move comes after a steep fall in the prices of two digital assets linked to the startup. UST had severed its association with the dollar.

Those resigning include Terraform Labs General Lawyer Marc Goldich, Chief Litigation and Regulatory Counsel Noah Axler and Chief Corporate Counsel Lawrence Florio. A spokesperson for this firm told CoinDesk Told“The past week has been a challenging one for Terraform Labs and some staff members have recently resigned. A large number of staff are working to meet the objectives of the project. Our focus is on revitalizing Terra’s ecosystem. is on.”

The major setback to Terra’s ecosystem is astonishing and has been rarely seen in the blockchain ecosystem. The main reason for this is Terraform Labs’ attempt to expand the use of a new payment technology in the form of algorithmic stablecoins. Other stablecoins have reserves in common assets but TerraUSD maintains it through an algorithm that controls supply and demand using Luna, another balancing token. TerraUSD, touted as an algorithmic stablecoin, broke its 1:1 link with the dollar last week. If an entity purchases more than 50 percent of the supply of LUNA tokens, it will be able to change the protocol. This situation could be misused to damage the Terra blockchain. Holders of Governance Tokens can vote on resolutions related to governance. Governance token holdings could change the way blockchains work.

version of cryptocurrency stablecoins Try linking your market price to a reserve asset like gold or common currencies. These are more commonly used for digital transactions that involve converting virtual assets into real assets. USD Coin, Tether and Binance USD are some of the popular stablecoins, which are pegged to the US Dollar. Stablecoins have emerged as a major medium of exchange. It is often used by traders to remit funds. It is easy to exchange major stablecoins for bitcoin or other cryptocurrencies.

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