Ethereum founder Vitalik Buterin said on Sunday that any attempts by Terra to repay its holders should be deployed towards the most vulnerable of its holders.
In a tweet, Buterin called for Terra’s developers to shift their recovery efforts towards UST holders who weren’t whales, but rather smaller, retail investors.
The ETH founder’s comments were in response to a thread by Twitter user @PersianCapital, which highlighted that most of UST’s supply on Anchor Protocol, which was ground zero for the stablecoin crash, was concentrated towards whale holders.
Terra recovery could be skewed largely towards whales
@PersianCapital references a Terra governance proposal that moots using the blockchain’s $1.5 billion Bitcoin reserves to return some degree of value to UST holders. The proposal, which was made last week, appears to have seen heavy engagement by the Terra community.
But such a plan would entail that whales, which make up roughly 82% of all UST holders, would get a much larger share than smaller, more vulnerable holders.
