Terra Watcher, a fairly notable Twitter user, published a nine-paragraph tweet on May 31, 2022, explaining why they believe the recently launched LUNA 2.0 is more sustainable than Avalanche (AVAX), Solana (SOL), and other altcoins.
They said LUNA is valuable because it controls the Terra 2.0 network via a democratic governance system. In this system, no single investor owns a majority share of the LUNA token. Unlike Terra 1.0, where its founders, Terraform Labs, held more than 50% of the total supplies of LUNA.
The Twitter user noted that in the LUNA 2.0 system, token holders have a voting right that can make an impact. But holders of other tokens, like AVAX, SOL, and NEAR, have pointless voting powers because the token supplies concentrate in only a few hands.
Specifically, they said:
Avalanche, Solana, Near are basically dictatorships controlled by central committees. Terra 2, on the other hand, is a true democracy. Supply is widely distributed, governance will actually mean something.
They went on to highlight the dangers of an undemocratic network system. TerraWatcher said majority holders can alter pretty much all parameters of a token. They can spend the community pool however they want, change staking rewards, change transaction fees, make a new native stablecoin, and do a multi-million dollar sponsorship deal with a sports team.
Earlier last month, LUNA lost 100% of its value, dropping to $0.000003 from $119. To revive LUNA, its team launched a new blockchain network called LUNA 2.0 and renamed the ill-fated LUNA to Terra LUNA Classic (LUNC).
At press time, LUNA 2.0 and LUNC trade at $7.45 and 0.000109, respectively, according to data available on CoinMarketCap.