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Polygon is now trying to acquire an upper hand over its other competitors
Terra holders have lost almost 95% of their wealth since the fall of UST and LUNA. Within a period of 24 hours, LUNA fell by approximately 98%, wiping away most of its investors’ wealth. Terra’s LUNA market rankings fell by leaps and bounds. The degraded price of Terra was immensely shocking for the crypto community because of its rapid growth in market capitalization, and its stabilization in the top 10 cryptocurrencies in the market. Terra LUNA fell when its Terra USD token ‘de-pegged’ from its dollar peg, taking down the entire Terra ecosystem along with it. Within a period of 24 hours, the UST token fell by almost 44%. Currently, the developers are scrambling to find alternative means to re-establish Terra’s dominance in the market, but unfortunately, investors are not at all impressed by these efforts. Recently, Polygon is making efforts to aid these Terra developers by launching its Terra Developer Fund to aid projects affected by the LUNA crash.
Recently, the CEO of Polygon Studios, Ryan Wyatt tweeted that Polygon is building a sidechain to aid and help scale Ethereum and is gathering a multi-million dollar fund called the Terra Developer Fund to help Terra projects shift from Do Kwon’s failed network re-establishment into Polygon. As the Terra ecosystem collapsed, Do Kwon has been initiating several programs to reinstate its position in the market. But the founder has constantly failed in his attempts. So now, Polygon attempts to rescue Terra developers and its projects. But maybe it is not just to profit Terra but also its own projects. The layer 2 platforms of Polygon has been making attempts to lure developers towards itself since LUNA’s fall.
Polygon Layer 2 Might Need the Help of Terra Developers’ Help
Most crypto developers are focusing on building the Web 3 ecosystem. And since the fall of Terra’s algorithmic stablecoin, they are only willing to trust networks that are more stabilized in nature. This is one of the many reasons why Polygon has created this fund and helps investors to get back up on their feet on a financial level.
Polygon’s layer-2 blockchain is built on Ethereum and has launched a relatively uncapped multimillion-dollar fund so that Terra-based crypto projects can be safely moved to Polygon. The fund will be financed by the US$450 million that MATIC had raised previously, its treasury, and the US$100 million ecosystem fund.
Wyatt also announced that the Terra NFT marketplace, OnePlanet will be the first project to make the migration to the MATIC network. The marketplace will also help Polygon migrate more Terra projects. The Polygon team is currently reviewing grant applications from interested Terra projects and is considering conversations with several Terra Defi protocols. According to reports, currently, more than 50 projects have already reached out to Polygon.
What effects might this have on Terra?
While several Terra projects are planning on deserting the LUNA network, its creator, Do Kwon has been initiating several plans, including launching the Terra fork. Kwon is also launching the new Soil Protocol that will facilitate NFT project deployment on the new Terra 2.0 blockchain. The hard work of the developers will probably go in vain. But not only MATIC, but crypto investors will also be responsible for the final decline of Terra. Only time will say how LUNA will manage to cope with these hindrances.