- Kwon's proposal is to carry out a hard fork of the blockchain, with the original chain continuing as Terra Classic. The new one will focus on attracting DeFi applications.
- A hard fork involves splitting the chain on which a protocol runs into two, with the new branch using a different set of rules. It represents an opportunity for Terra to perform a reset on its failed project, which saw native stablecoin UST and sister token LUNA collapse to near zero earlier this month.
- However, initial reaction to Kwon's plans was largely negative with some 92% of 6,220 Terra community members voting against the change.
- Goldman Sachs (GS) flagged Lido as illustrative of how decentralized finance can amplify systemic risk in a note released Friday, citing the protocol's links to Terra's Anchor protocol.
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