Collapsed Terra Ecosystem Launching DAO Infrastructure

Blockworks exclusive: Terraform Labs is creating infrastructure to build DAOs on Terra 2.0


Blockworks Exclusive Art by Axel Rangel


key takeaways

  • The ‘Enterprise Protocol’ looks to set “a new standard for DAOs on Terra”
  • The Enterprise Protocol is one of the first Terra-built projects following the ecosystem’s collapse

The Terra collapse triggered a $2 trillion crypto crash earlier this year. Now, Terraform Labs is plotting a comeback.

On Friday, Terra’s main Twitter account followed @enterprise_dao, a newly created account and a bio that reads, “Building a new standard for DAOs on Terra.” A source close to the matter, granted anonymity to discuss private business matters, told Blockworks the “Enterprise Protocol” is intended as a new standard infrastructure to build DAOs on Terra. 

In early May, a flurry of liquidations created a hyperinflationary “death spiral” for Terra’s LUNA token and UST algorithmic stablecoin, erasing nearly $30 billion from the Terra ecosystem, according to CoinDesk

Behemoth crypto hedge fund Three Arrows Capital (3AC), a lead investor in LUNA, was decimated. A crypto credit crisis ensued, sending digital asset lenders Celsius and Voyager Digital into bankruptcy.

On May 28, Terra migrated to a new chain, dubbed Terra 2.0 — leaving the UST stablecoin behind.

Terra’s CEO Do Kwon, once known to deride LUNA skeptics as “poor,” has stayed mostly quiet this summer. In a rare tweet, he signaled his support for the developers creating the Terra 2.0 ecosystem: “Let’s leave them alone to build.”

Terra also followed the brand-new @Entropic_Labs on Twitter on Friday, a “decentralized and secure on-chain randomness source” now deployed on Terra.

The Enterprise Protocol launch will test whether Terra’s builders can rescue the ecosystem’s sullied reputation. A website and documentation for the DAO are forthcoming, a source said.

A spokesperson for Terra did not immediately return a request for comment.

Don’t miss the next big story – join our free daily newsletter.


Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research report - cover graphics (1).jpg


In this report, we dive into crypto private market data to gather insights on where the future of the industry is headed. Despite a notable downturn in private raises, capital continues to infuse promising projects that aim to transform payments, banking, consumer experiences, community, and more, with 2023 being the fourth-largest year for crypto venture capital.


BUZZ holds shares of Coinbase, Robinhood and MicroStrategy


Opinion: Even though I didn’t pay for my “Diamond Hands” burger with BTC, don’t let that fool you into thinking that crypto’s development is futile


The results mark “a major positive inflection point,” one analyst says, as the exchange carries net income momentum into a crypto rally


While the slate of 10 US spot bitcoin funds have tallied $4.6 billion of net inflows thus far, half of the field is lagging the leaders


Trading volumes totalled $154 billion in Q4, including $125 billion in institutional volume


DeFi on Bitcoin is all the rage right now and Stacks is positioned to benefit