A validator for the Terra network, known by the pseudonym THORmaximalistleaked messages that were posted on the main Terraform Labs communication group in the days of the ecosystem collapse that drove the prices of cryptocurrencies LUNA and UST to zero.
The messages shared by him on Twitter on Tuesday (31) were from the Telegram group called “Terra Rebirth League”. In the closed chat room were the most important members of the Terra community, such as the main validators of the network and the executive team of Terraform Labs, including the CEO of the company, Do Kwon.
The conversation history leaked by him — and available for reading on IPFS.io — begins on May 12 and exposes the chaos that ensued among the project leaders during the melting of the network’s tokens.
War room memories
“In the spirit of transparency, here is Telegram’s main ‘war room’ chat log. It was there that most decisions were made by delegators and developers during the build up to Luna v2 release,” explained THORmaximalist.
The messages begin the day Terraform Labs decided to temporarily “turn off” the blockchain as a supposed security measure. At that moment, Luna had already dropped to zero and its price only got worse as time went on.
Despite the chaos, Do Kwon found reason to celebrate: a big investor who was betting on the UST crash in the futures market was in danger of losing all his money.
“Well, on the one hand, the whale with bETH staking on the Anchor Protocol and which is shorting UST will be locked up there for two days. So if the market explodes, he’s screwed,” Kwon wrote in one of the leaked messages.
Although Terra blockchain validators were the majority in the group that defined itself as “a specialized, independently operated task force”, the company behind the Terra ecosystem tried to organize the group’s decisions.
The debates, however, were fragmented and Do Kwon seemed lost at times, such as when the network should go back on the air.
The operation was supposed to be coordinated with the validators on the network, but without guidance from Terraform Labs, many did not know at what height of the block they should be.
“Can you confirm if the net is good to cast? Can anyone summarize the issue? I’m pretty confused,” wrote Do Kwon.
In another message, Kwon seemed not to know how to proceed anymore and asked for help from other people in the company: “@hendrik @leo_zl could you guide the network launch sequence? It’s been a while since I did this and I forgot,” he admitted.
After the blockchain restart, a new wave of problems began to emerge, such as the price mismatch that the network oracles were reporting.
This bug hit one of the most popular DeFi projects on the net, Mirror Protocol, and opened the door to a string of hacks.
Validator THORmaximalist, who leaked the messages, told Cryptoslate that after the fall of Luna and UST, the plan to rebuild the old ecosystem was scrapped and the solution advocated was to launch a new blockchain from scratch.
“The network’s projects are multipliers of community value and, with each passing day, the value was getting further away. The protocols [clientes da blockchain Terra] were already thinking about switching to other networks or starting their own L1s [redes de primeira camada]” he explained.