Anyone who is part of the crypto community and uses social media applications cannot remain oblivious of the harrowing crash of Terraform Labs tokens LUNA and UST. After getting broke off from its peg stablecoin UST and LUNA respectively crashed down to near zero in a matter of a few hours. At one end, investors of Terra have suffered massive losses.
On the other side of the spectrum, the developers who were working on various projects on Terra are now looking for alternative options.
It is worth noting that, at present, there is no shortage of alternative blockchain projects in the cryptocurrency space. In the same vein, blockchain projects like Polygon, Juno, and Fantom are trying to rise to the occasion.
After the 99.9% downfall of the Terra token projects last week, the development project that was still in progress has gone offline.
At present, Terraform Labs announced that it would go offline until further notice, and Do Kwon, CEO of the project, has also proposed a revamping plan for the project. In the middle of the chaos, the developers of the Terra Chain are left with no other choice but to look for new destinations.
DeFiLlama report suggests that the total market cap of the Terra chain project has dropped from $31 billion to $400 million in a single sweep. Developers are also facing issues with the famine of liquidity on Terra Chain.
To mitigate any further losses, Terra developers are reportedly migrating to projects like LunaBulls, Stader Labs, Hero NFT, Kujira, and LunarFlip, among others.
Terra Developers are Receiving Incentives to Join Other Blockchain Projects
At one end, Do Kwon is trying to gather node validators and asking the Terra community to stay united. On the other hand, Terra developers are receiving incentive packages and bids to persuade them to join some of the biggest Terra blockchain competitors.
Ryan Wyatt, the CEO of Polygon Studios, recently tweeted that the gaming and NFT wing of the blockchain is working in tandem with Terra developers on several new projects.
Juno blockchain has introduced a new governance program that plans to distribute 1 million JUNO tokens worth $7 million at the current market price among Terra developers.
Likewise, Fantom has also announced the availability of incentives, grants, and rewards for the developers from Terra that are looking to relocate. Meanwhile, other blockchain networks like Stargaze, Injective, Regan, and FetchAI have also followed suit.