Following the aftermath of Terra’s UST implosion, the blockchain project’s founder Do Kwon has been actively discussing the Terra ecosystem revival plans and one specific proposal will be voted on May 18. The plan is to fork the blockchain into a new chain that does not include an algorithmic stablecoin, and the newly minted tokens […]
Following the aftermath of Terra’s UST implosion, the blockchain project’s founder Do Kwon has been actively discussing the Terra ecosystem revival plans and one specific proposal will be voted on May 18. The plan is to fork the blockchain into a new chain that does not include an algorithmic stablecoin, and the newly minted tokens from the network will be airdropped to Terra ecosystem participants and holders.
Terra Community Members Plan to Vote on a Fork Proposal to Revive the Broken Project
Last week the Terra blockchain ecosystem was obliterated and the project’s native tokens lost significant value. At the time of writing, a single LUNA token is trading for under a U.S. penny and the once-stable coin terrausd (UST) is changing hands for $0.09 per unit. During the last few days, Terra’s team — Terraform Labs — and the community have been discussing how to remedy the project’s fallout and give value back to the blockchain’s participants and holders. On May 16, Terra’s founder Do Kwon published a revival plan that aims to fix the project’s problems, and the proposal will be voted on Wednesday, May 18.
The proposal called “Terra Ecosystem Revival Plan 2” aims to fork the blockchain into a new chain that doesn’t involve adding an algorithmic stablecoin. The old chain will be called “token Luna Classic or LUNC” and the new chain will inherit the original branding by being called “Terra LUNA.” Following the split, the new tokens will be airdropped to Luna Classic holders, stakers, application developers, and residual UST holders. The wallet owned and operated by Terraform Labs (TFL) will be removed from the airdrop entirely.
Kwon says the “Terra ecosystem and its community are worth preserving” and the application ecosystem built on Terra has hundreds of developers. Terra Station has more than a million users worldwide and Kwon believes despite the recent fallout, “[Terra has a] strong brand recognition and a name that almost everyone in the world will have heard about.” Details concerning the token distribution note that there will be 1,000,000,000 new LUNA tokens tied to the Terra chain.
25% will be dispersed to the community pool for staked governance and 1% will be allocated to essential developers with no lockup period. 4% will be dispersed to essential developers after a one-year cliff and four-year vesting period. 35% will go to all bonded and unbonded LUNA stakers except for TFL. Wallets with one million LUNA or less will have different vesting periods. 10% will go to LUNA holders and 25% will go to UST holders.
Community Responses Indicate People Disagree With the Terra Revival Proposal
The proposal says that a “pre-attack snapshot” will be taken at Terra Classic block number 7,544,914. The chain fork will commence a few hours after the launch snapshot is taken and an estimated date for the new Terra network launch will occur on May 27, 2022. The proposal seems to have a lot of people who do not like the plan, while others favor the idea brought to the table. One individual wrote: “This is an interesting proposal and I’m glad the community will move forward with a new chain.” Another person against the idea said:
No one wants a fork. Just burn the current LUNA and fix the current algorithm to get back UST peg.
Some people did not like Kwon saying that “Terra was more than just UST.” “I agree that Terra is more than $UST,” the individual replied to Kwon’s post. “There should be a stable for all 180 fiat currencies. I do not want a fork. I believe 99% of the value of Terra remains in the current incarnation of the system.” Kwon thinks the proposal is “a chance to rise up — anew from the ashes” similar to a phoenix.
In fact, Terra did have a suite of fiat currencies in addition to the most used and most popular UST stablecoin. Terra’s KRW stablecoin was popular as well, but the token de-pegged from the Korean won’s value. A single KRW is worth $0.00079 today while the blockchain-based terrakrw token is only worth $0.00006945.
What do you think about the proposal that aims to fork the Terra chain and airdrop tokens to the network’s participants? Do you think the idea is viable? Let us know what you think in the comments section below.