Over $20 million had been earmarked to help projects making the move.

More than 48 projects previously on the Terra network have begun migrating to Polygon almost two months after the Terra ecosystem collapsed following the implosion of terraUSD (UST).

“Terra projects have begun migration,” Polygon Studios CEO Ryan Wyatt said in a tweet early Monday. “Over 48 projects and counting… including OnePlanet_NFT, an exclusive 0xPolygon marketplace, and DerbyStars_HQ.”

In May, Polygon Studios announced a multimillion-dollar fund to assist Terra projects looking to switch. It was ready to pay as much as “$20 million, roughly” to help Terra teams migrate to its own blockchain to continue building products.

“For any project which wants to come from Terra to Polygon, we will be happy to provide them both financial assistance as well as technical assistance,” a spokesperson for the Polygon ecosystem told CoinDesk at the time. “We’ll provide them developers and everything.”

Developers behind other blockchain networks also courted Terra projects, among them Kadena, Cosmos and Avalanche, as previously reported.

UST, the Terra ecosystem’s algorithmic stablecoin that was designed to maintain its value by minting or burning exactly $1 worth of luna for 1 UST, fell to under 10 cents in May after losing its peg following investor outflows.

Excessive minting of luna to try and bring UST back to its peg caused prices of the governance token to fall by as much as 99.7%, while Terra-based DeFi applications saw over $28 billion in outflows.

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A probe has been launched into Do Kwon’s Terraform Labs over alleged embezzlement of the company’s bitcoin.

South Korean law enforcement agencies are investigating Terraform Labs following last month’s collapse of their controversial algorithmic stablecoin, TerraUSD (UST), according to a report by the Financial Times.

The Seoul Metropolitan Police Agency has launched a probe into allegations of embezzlement of an undisclosed amount of Terra’s bitcoin holdings, the report said.

Terra held $3.5 billion worth of bitcoin (BTC) in its reserves, in a failed attempt to stabilize the price of UST.

Terraform co-founder Daniel Shin denied allegations of fraud, telling the FT that there was “no intention of deception” and that the company wanted to innovate the payment settlement system using blockchain technology.

Last month South Korean authorities estimated that around 280,000 of its citizens had been impacted by the collapse of UST and Luna (LUNC).

Since the implosion of Terra’s stablecoin, the company has launched a new token (LUNA) that was airdropped to previous holders. LUNA is currently trading at $3.12 with a market cap of $642 million and has lost 80% of its value since last week’s peak.

Terraform Labs did not immediately respond to CoinDesk’s request for comment.

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Terra believes that decreasing the amount of UST in circulation, while increasing the amount of available LUNA, is the easiest way to return the UST to a peg.

Terra believes that the downwards pressure on UST’s peg is diluting Luna, impeding recovery for both while creating an excess of UST, and the way to solve this is through burning UST and increasing the available pool of Luna.

“The primary obstacle is expelling the bad debt from UST circulation at a clip fast enough for the system to restore the health of on-chain spreads,” said Terra in a Tweet.

Algorithmic stablecoins like UST are supposed to be automatically pegged to the price of another currency. As explained in a prior CoinDesk learn article, traders can swap LUNA for UST at $1 regardless of the market price because the algorithms in the backend will manage the supply of LUNA creating enough scarcity to justify the $1.

A token burn refers to taking crypto out of circulation on the blockchain. It can be thought of as a deflationary event, because it would increase the value of the remaining blockchain. For token holders, it would be a similar event to a share buyback.

In a proposal put forward to token holders, Terra said that it wants to burn the nearly 1 billion UST (roughly $690 million) in the community pool while increasing the Base Pool of LUNA available to 100 million which in turn increases minting capacity to over $1 billion. This will help expedite the outflows of UST from the system, and thus pushing it back closer to its peg, while pushing down the price of Luna.

“Currently, the burning of UST is too slow to keep pace with the demand for excess UST to exit the system, which is hindered by the BasePool size,” reads the proposal. “Eliminating a significant chunk of the excess UST supply at once will alleviate much of the peg pressure on UST.”

Some comments on the proposal asked if this happened because of a bug in Terra’s coding, or if it was also a product of a broader market downturn driven by the decline in bitcoin’s price.

Validators of the network are able to vote for this proposal. According to a vote tracker, the Yes side has received 50.47% of the vote while the abstain side has 49.1%. 87.8% of eligible voters have already cast a ballot, and the pass threshold is 50%.

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Some 58% of LUNA traders were betting on higher prices even as the tokens fell yesterday.

Futures traders lost $106 million on Terra’s LUNA in the past 24 hours as prices fell below $7.

Data shows some 58% of traders were placing futures bets on higher LUNA prices despite yesterday’s drop. That move accounted for over $63 million in liquidations, a higher-than-usual figure and one of the largest in the history of LUNA futures.

However, $387 million in open interest – or the amount of unsettled futures contracts – continues to exist at writing time, suggesting there could be more liquidations or volatile price action ahead as traders take profits or get liquidation.

Algorithmic stablecoins like UST are backed by a basket of assets, such as LUNA and bitcoin (BTC), without depending on any centralized third party to hold those assets. This week, however, UST lost its peg and fell to as low as $0.66 on Monday night before recovering to the $0.90 level on Tuesday.

Wednesday was not as kind in terms of recovery. UST fell to under $0.35 this morning as trader sentiment around the stablecoin dropped. This was despite the Luna Foundation Guard (LFG), a non-profit formed earlier this year to maintain a reserve backing for LUNA, liquidating its bitcoin holdings in an effort to try and save UST’s peg.

LUNA’s drop was among the steepest for a major cryptocurrency in recent times. Prices fell 85% in the past 24 hours, and 32% in the past hour alone as traders priced in contagion risks to the LUNA tokens as TerraUSD (UST), the platform stablecoin pegged to U.S. dollars, lost its peg earlier this week.

Part of LUNA’s decline came as parent firm Terra apparently issued more tokens to sell to the open market and raise money to back UST. As per its design, $1 worth of LUNA can be exchanged for exactly 1 UST, or vice versa. The additional supply could have contributed to LUNA’s tremendous price plunge in the past 24 hours.

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