UK Regulator Consider Terra Coins Crash in New Crypto Laws
The UK Financial Regulator and the Ministry of Finance will scrutinize the collapse of Terra ecosystem crypto tokens by creating new rules for crypto assets. According to the FCA Markets Executive Director, recent market volatility in stablecoins should be considered; when the financial behaviour authority works with the Treasury.
On May 13, Terra’s algorithmic Stabilcoin fell to 23 cents. The LUNA token, created to prevent UST algorithmic Stabilcoin instability, dropped 96% at one point. An algorithmic Stabilcoin is one that theoretically maintains its attachment using only software and rules; This means that it is not necessarily secured by collateral. Instead, token programming, or smart contracting, can increase supply if the price falls; Or reduce supply if the price increases. In March, the UK said it would work on a new crypto regulatory package. Also, plans to regulate stable coins. The government suggested that algorithmically stable coins should not be in control in its consultations.
Ethereum Foundation and Crypto
Ethereum Foundation Justin Drake, Preston Van Loon, Preston Van Loon, Justin Drake, and Vitalik Buterin announced new ratings for the network “merger” at Proof-of-Stake, indicating that this could happen in August.
According to many members of the Ethereum Foundation, the “merger” with the professional stock may take less than three months. The primary developer of Ethereum said they planned the network transition to Proof-of-Stake for the last month of summer.
In April, a spokesman for the Ethereum Foundation said the merger wouldn’t occur according to a previous estimate for June 2022. However, they noted that there was a “strong desire” in Ethereum’s development circle to merge before the network complexity bomb, which launched in August.
Ethereum developers created the Complexity Bomb in 2016; As a way to ensure that network participants move into a new Proof-of-Stake chain after merging. After activating the complexity bomb, the mining blocks in the network will gradually gain more computing power until this becomes impossible.
Due to the merger delay, Ethereum developers had to install a complexity bomb several times to make the network work until it was ready to switch to Proof-of-Stake. Suppose Ethereum developers are ready to merge in August. In that case, they will no longer need to return the complexity bomb, resulting in a cleaner transition.
Conclusion
Before the merger, the developers will also conduct a test merger on the Ropsten Ethereum test network. Earlier this week, a Github pull request confirmed that the merger of the Ropsten test network should take place around June 8. This indicates that preparations for the significant network merger are nearing completion. Ethereum completed several Merge test networks.
Ethereum Merge is a highly anticipated upgrade that will combine the current consensus layer with the new Proof-of-Stake Beacon Chain. The merger will turn Ethereum into an energy-intensive end-of-life confirmation consensus mechanism on PRO-Stack. It will also reduce ETH emissions by about 90%.
