Do Kwon’s proposition to rebuild the Terra blockchain and create LUNA 2.0 tokens secured the governance vote. Following the abrupt collapse of the TerraUSD (UST) algorithmic stablecoin, this will develop a new blockchain that would airdrop tokens equally to those affected.
CEO Kwon has proposed the ‘Terra Ecosystem Restoration Plan,’ which includes issuing new currencies and the distribution of those coins to investors who have lost money. Kwon sent the following message on Twitter on 18th May:
“Let’s call the existing Terra blockchain network, ‘Terra Classic, and existing Lune ‘LUNA Classic’ and build a new Terra blockchain.'”
Kwon’s proposal received 65.5% votes cast. Only 13.2% of those voting against it said: “no with the veto.” Complete abstinence was chosen by little over 20% of voters.
Terraform Labs CEO Do Kwon recommended launching a new network after Terra’s demise (initially describing it as a fork before Terraform Labs corrected that). Terra will be the name of the new blockchain, while Terra Classic will be the name of the current chain.
The Revival Plan
According to details provided in the proposal by Do Kwon, Terra 2.0 will be released on the mainnet on Friday. LUNA 2.0 tokens will be accessible for trading after the launch. Existing network stakeholders will receive these tokens at a pre-determined percentage. Vesting periods will apply to several of the tokens.
Furthermore, the new Terra blockchain will function without the UST token, which was the initial goal of the Terra network.
Here’s the summary of the proposal:
- Create a new Terra chain that does not include the algorithmic stablecoin. The old chain, Terra Classic (token Luna Classic – LUNC), and the new chain, Terra (token Luna – LUNA) Luna, will be airdropped to Terra Classic stakers, holders, residual UST holders, and Terra Classic necessary app developers.
- Terra will become a 100% community-owned chain after TFL’s wallet (terra1dp0taj85ruc299rkdvzp4z5pfg6z6swaed74e6) is removed from the whitelist for the airdrop.
- Allocate a significant percentage of the token distribution to 1) provide an emergency runway for Terra dapp developers. 2) Align developers’ interests with the ecosystem’s long-term success
- Token inflation will be used to incentivize network security. Staking returns of 7% p.a. are the goal.
Relisting Luna 2.0
Reports also suggest that Do Kwon has already connected with cryptocurrency exchanges to relist Luna 2.0 once it goes live.
The whereabouts of CEO Kwon, who is the subject of a police investigation, are unknown because he has not been found at his Singapore offices or his home. He has been using Telegram as a point of contact. And there is speculation that one of an employee of Terraform Labs from Singapore is the contact person.
Available media reports also suggest that Kwon contacted at least the top five exchanges that support KRW trading in South Korea for about a week after the vote titled, “Rebirth of Terra Network,” was submitted, adding “Please list Luna 2.0.” However, a report published on 25th May by Heraldcorp, a Korean outlet, suggests that all local exchanges, except for Upbit, are keeping their distance from Terra.
“If you want to be listed, go through the official listing process,” the domestic exchanges that were approached reportedly said in response to Terraform Labs’ request. In the case of Upbit, the exchange may allow airdrops for new Luna coins.
“Airdrop is to support new currencies to current coin holders,” an Upbit spokesperson explained. The person added that the distribution of the new Luna tokens is “a point where existing coin holders’ interests are tangled.”
With the exception of Coinone, all major local crypto-asset exchanges have stopped supporting transactions for Luna.
Also, we have not come across any specific plans in place for the airdrop delivery of fresh coins to existing coin holders.