Table of Contents
The situation
At 01:58:49 (UTC) last night, after days of uncertainty, the Terra blockchain was halted. We as a team share your sadness that our journey on Terra has come to an end, however we are here to reassure you that this is most certainly not the end for Kujira.
We’ve been honoured to have been part of, and built for, the most incredible community. We intend to continue to do so, and we’re really excited for the future.
Our thoughts
Prior to the events of this week, we’d had long discussions about what the next steps are for Kujira and our suite of products. With the launch of FIN — our brand new order book style decentralised exchange — some concerns around technical limitations started to arise. Scaling was one concern, as sharing a chain with other protocols also means sharing the transaction bandwidth of the chain, something we saw becoming congested even before this week. We also lacked the ability to design automated actions into any future product — for example liquidations on a margin trade on FIN — without the reliance on 3rd party bots and financial invectives to run them.
The options available to us are either A) build on top of an existing Layer 1 chain, eg: Ethereum or Avalanche, or B) create our own independent, sovereign chain. Option A provides a ready made platform, with the existing security and interoperability, but requires us to build the next phase of Kujira within the technical boundaries of smart contracts and doesn’t help with the concerns above. Option B however gives us complete control over the protocol design, allowing more complex functionality, where for example activity that was previously required to be executed by bots, can instead be built into the base protocol.
Thankfully, we don’t need to make a decision between A or B. With the Cosmos ecosystem and the Cosmos SDK, we can build our own sovereign Layer 1 chain, where we have complete control over the protocol design, as well as interoperability with all other Cosmos chains from day 1.
Terra itself is Cosmos-based, as are Thorchain, Osmosis, Juno, Crypto.org and the Secret Network, among many others. Building on Cosmos makes all of our current apps and infrastructure portable to our new chain, allowing us to get up and running again much faster than we might otherwise be able to.
Plans moving forward
Finally, we want you all to come with us on this journey. We plan for the KUJI token to be the native fee-paying token on this new chain, with sKUJI built into the protocol natively as its liquid staking derivative. We have a snapshot of all KUJI and sKUJI ownership on Terra at block height 7607789, and these balances will be reinstated at genesis of the new chain. No more fundraising, no dilution, we’re simply going to pick up where we left off.
So that’s where we’re heading. We’ll be heads down for a while as we build out this next phase, but will of course be giving constant update reports and other news along the way.
Thank you
Once again, a whale sized hug to everyone who has supported us along the way, and all those that stuck by us. We may have lost a fight, but the war is very far from over.
