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.
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