Terra Blockchain shook the entire blockchain ecosystem the moment it crashed, losing its peg to the dollar by a large margin. Part of it was because TerraUST was an algorithmic Stablecoin – not backed by fiat currencies, and partly because Anchor promised 20% returns from staking – which was too much. As soon as users started to withdraw, the platform panicked.
It then crashed – leaving many projects and protocols on Terra Blockchain with an uncertain future. Thankfully, Polygon has added some positive certainty to it by offering massive to migrate on its network.
You might want to watch that closely – things are about to get bullish for MATIC.
Terra Projects Finally have a New Home – on Polygon
Ryan Wyatt, CEO of Polygon Studios, came to Twitter with the news that Polygon has decided to start multi-million-dollar funds to find a home for the protocols and projects that have gone homeless due to the collapse of Terra Blockchain. Known as the Terra Develop Fund, it is a lifeboat for Terra projects that will move from the sinking Terra Blockchain onto Polygon.
We have put together a multi-million dollar fund to provide relief to Terra developers to help them stay on their feet and migrate.
Today, it starts with us announcing our partnership with @OnePlanet_NFT, a premier marketplace on Terra coming to @0xPolygon exclusively.$MATIC pic.twitter.com/9MFF4xXoju
— Ryan Wyatt (@Fwiz) May 25, 2022
Polygon was previously known as MATIC and has been a mainstay of the crypto ecosystem since 2019. Launching as a sidechain to provide scaling solutions to Ethereum’s Network, it soon started climbing the ranks. Currently, it ranks 17 as one of the world’s most popular blockchains and has a current market cap of $5.2 billion.
Terra did whatever it could to maintain UST’s peg. That included aggressively selling off its Bitcoins reserves, dropping BTC’s value, and plunging the crypto market and LUNA’s value. Luna went from $64 to $0.004 near the end of May 2022. This massive loss caused the entire blockchain to stop operating – seemingly a deliberate move by the developers to control the crash. However, that attempt wasn’t fruitful. By then, LUNA had entered into a death spiral. So, there was no stopping it from crashing.
Mass Migration to Polygon
Desperate to leave a sinking ship and still be functional, Terra Marketplace, One Planet, was the first protocol to accept Ryan Wyatt’s proposal of migration. As soon as One Planet comes to Polygon, it will help other projects that are willing to migrate to the Polygon blockchain – the most willing among those being the Terra NFT projects.
One Planet was only the first project to ask for help from Polygon. Till now, over 50 projects have reached out to Polygon – hoping to continue to exist on the Polygon blockchain. The team is currently in the process of reviewing their grants and migration applications.
Polygon has a massive advantage over Other Chains – Says the CEO
Those baffled by the progress of this chain must know that Polygon has been planning to do this since Terra started to show the first sign of the oncoming crash.
“Polygon has a massive advantage over other chains”, stated Ryan, emphasizing the largest companies on the Planet that have extended their support to Ethereum’s sidechain, including EA, Riot Games, Mythical Games, Unity, Activision, Amazon, and Google, among others.
Terra NFTs will have access to massive resources on Polygon once they arrive. And since more projects have started to emerge on Polygon, MATIC’s – its native token’s value has risen in the market.
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