Media: Anchor developers accused Do Kwon of the collapse of the Terra ecosystem

The collapse of Terra was inevitable, which became evident at the design stage.About this on condition of anonymitydevelopers of the leading ecosystem protocol Anchor told JTBC.

According to them, when developing the protocol, the calculations implied a fixed percentage rate of return at the level of 3.6%, but a week before the launch of the project, the head of Terraform Labs, Do Kwon, refusedof this idea and raised the bar to 20%. 

Terra's Death Spiral: How and Why LUNA and UST Failed

JTBC interlocutors noted that repeatedlywarned management about the risks and possible consequences of such a decision, but Kwon did not listen to their arguments. They also emphasized that the head of Terraform Labs single-handedly made all key decisions regarding the development of the project.

“Do Kwon is able to make people believe even the most absurd things. He did everything he wanted,” said a TV channel source.

JTBC reporters got their hands on internalTerraform Labs documents dated March-April 2022. In them, Kwon allegedly indicated to keep the rate of return at 20%, even if there is not enough money in Anchor’s reserves to pay out to users. 

On high-rate risks back in July2021, economist Francis Coppola warned. She noted that a sudden outflow of liquidity from the product could trigger its collapse. To her remarks, Kwon replied that he "doesn't debate with beggars on Twitter."

Previously, a FatMan analyst, citing his ownsources at Terraform Labs, said that in 2020 the company overestimated the amount of funds blocked in the ecosystem to raise venture capital.

The analyst also called Kwon's claims that Terra 2.0 belongs to the community "outright lies."

He pointed out that Terraform Labs and its headused "shadow wallets" to support their own governance proposal. According to him, they participated in the airdrop and now own about 42 million LUNA.

Recall that in May 2022, FatMan accused Kwon and venture capitalists of manipulating the management of Mirror Protocol and deceiving retail investors. 

In the same month, it became known that the DeFi project was the victim of an exploit worth more than $90 million.