Terra’s recovery plan to stabilize the blockchain and recover some value appears to be mired with technical hiccups.
Roughly two proposals associated with the recovery plan have failed to execute since last week, due to issues with the smart contracts behind them.
The proposals sought to burn excess UST, and also restore inter-blockchain communication between Terra and other chains, allowing holders to move back their LUNA and UST to Terra.
The errors come as Terra prepares to hard fork the blockchain and launch a new version. So far, 66% of LUNA holders appear to be in favor of the proposal.
Two Terra proposals fail to execute
The more serious of the two failures is Prop 1188, which aimed to burn about 1.4 billion UST tokens from Terra’s community pool, to support prices. But while users voted in favor of the proposal, it was not executed due to a smart contract error, which attempted to burn more UST from the pool than existed.