Due to the downward spiral of Terra USD (UST) stablecoin that led to a 100% price crash of popular stablecoins UST and LUNA in the market, the Terra-based projects are in danger. The epic collapse has led to a crunch situation after Terra Blockchain was halted twice and disabled its functions temporarily. To help several on-chain projects, Polygon, Juno, and Fantom have extended their support to Terra projects.
However, small businesses and DeFi tools on Terra Blockchain are unable to see a permanent solution to this price crash. They are unsure about the potency of the recovery plan to solve the problem suggested by the Terra founder Do Kwon. On the other hand, these popular blockchains are not only fast, secure, and scalable but also provide attractive packages and full assistance to the developers and projects who want to migrate from Terra.
Moreover, to avoid price instability and future crash, some developers of Terra-based applications have started to migrate their projects to other chains. These include various NFT and DeFi-related projects and tools such as Kujira, Stader Labs, LunaBulls, LunarFlip, and Hero NFT.
Polygon Studio’s unwavering support of Terra projects
Polygon Studios CEO Ryan Wyatt announced on Sunday that they are working on numerous Terra projects. Also, they are providing full assistance to migrate the projects on Polygon Blockchain. Further, Polygon will go to add more capital, incentives, and resources to welcome aboard these projects and their mission. Polygon is way more than happier to extend its support to the Terra developers and communities who are left behind in the middle of the ocean during the crisis.
Also, Sandeep Nailwal, founder of Polygon adds that Polygon’s proof-of-stake (PoS) mechanism could be used effectively by the community projects. He also suggested the addition of ZK-Roll Ups that will be sooner available for the developers on the network.
Also read: Polygon announces a new ZK-proof-based identity solution
Juno and Fantom Blockchain to rescue Terra-based communities
Juno has also proposed incentives for 1 million JUNO tokens worth $7 million for Terra-based projects who wish to migrate their applications. According to Juno, many applications have shown interest in the proposal and the network.
Though Juno possesses the same technical architecture as Terra, it also has features like interoperability and smart-contract networking. It is no doubt that they both rely on Cosmos SDK architecture. Such features can bring indefinite opportunities to the migrating application and Juno Ecosystem as well.
Meanwhile, the Fantom Blockchain based on its Layer-1 solution has shown its curiosity to support the Terra community. It states through its Twitter handle how well prepared they are to absorb new projects and developers. The Fantom team has drawn a comprehensive grant program to help communities to integrate, market, and connect with more possibilities.
Also read: What is yield farming in the crypto world of DeFi (Decentralized Finance)?
Last but not the least, the creator of the Terra blockchain Do Kwon is suggesting the hard fork of the blockchain to save the Terra ecosystem. Through hard forking, the old algorithmic stablecoins will be abandoned while new stablecoins will be created. The plan to restart fresh also reflects the distribution of 1,000,000,000 new LUNA tokens to the holders as their compensatory loss. After the collapse, LUNA is hyperinflating in the market, while UST is trading at a tenth of the US dollar.
