DeFi Insurance Company Pays $11 Million to Victims of LUNA Crash: Details

InsurAce (INSUR), a decentralized finance (DeFi) insurance protocol, will pay a total of $11 million worth about 14 million won as compensation to customers who were affected by the damage caused by the failure to maintain the value of TerraUSD (UST) against the US Dollar.

According to the report, InsurAce has processed relatively 173 claims and it’s currently considering 61 other outstanding claims.

Read Also: Terra Team Explains Why Terra 2.0 Is Not a Fork but Entirely New Chain

Back on May 13th, InsurAce caused a stir by stating that it would shorten the claim period from 15 days to 7 days and limit some insurance claims for those who were left devastated with huge losses after the collapse of Terra blockchain.

InsurAce reportedly took measures to reduce the amount it had to pay to its affected customers. After the controversy, Dan Thomson, the chief marketing officer at InsurAce, said most of the 173 claims submitted, including the rejected ones, had already been processed, and the DeFi insurance company was ready to disburse about $11 million to claimants.

Dan Thomson said, “To prevent further losses for UST, a move was needed to shorten the billing period for 234 claims in the Terra portfolio. There is no point in delaying the process on behalf of Kerr.”

Terra Blockchain Rebirth Proposal Approved

Via a governance vote that lasted for about a week, Do Kwon’s proposal to rebirth the Terra blockchain, which will result in the creation of LUNA 2.0 tokens, was approved

The approval will bring about the creation of a new blockchain that will proportionally airdrop tokens to those affected by the sudden crash of the TerraUSD (UST) algorithmic stablecoin.

Read Also: CZ Explains Why Binance Resumes Terra (LUNA) Trading Despite Collapse

The new blockchain is codenamed Terra 2.0, while the current chain will be renamed Terra Classic.

According to the details provided in the proposal, Terra 2.0 is scheduled for mainnet launch on Friday, which will make the new token (LUNA 2.0) available for trading.

These tokens will be airdropped to existing stakeholders of the network at a pre-decided percentage. Many of the tokens will be subject to vesting periods to avoid immediate selloffs.

It’s worth noting that the new Terra blockchain will exist without the depegged algorithmic stablecoin TerraUSD (UST).

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