The Terra (LUNA) and UST crash had left many in the crypto space in a state of shock. Many investors lost their entire life savings, leading them to utter ruin. Not only that, the incident also led many to lose confidence in cryptocurrencies. However, the team at Terra has revealed plans that could, albeit there is a lot of skepticism, reverse the damage that was done.
Terra creator Do Kwon‘s proposal calls for a fork, which would split the Terra blockchain into two parts. While the hard fork idea received support among LUNA holders, the community was less than enthusiastic. Regardless, the fork is likely to happen. Terra announced on Twitter earlier today that it will be launching a new blockchain that would be separate from the genesis chain.
What is LUNA 2.0?
Luna 2.0 will be a fresh new Terra blockchain token designed to save the Terra ecosystem following the collapse of the stablecoin, UST.
Do Kwon, the creator of TerraForm Labs proposes that a new chain replace the present Terra network. Luna 2.0 will also be replacing the current version. It will cut links with the UST stablecoin, which was the source of the crash.
The old chain, will not just vanish; they will coexist. Terra Classic will be the name of the previous chain, while Luna Classic will see the present Luna remain.
If the current vote succeeds, Luna 2.0 will go live on May 27, the same day as the Terra chain’s genesis block. These dates, however, are not yet confirmed. Once the resurrection plan is approved, engineers will have to quickly design the new chain in order to activate it. This date will also see the current coin officially renamed Luna Classic.
At the debut of the new Terra chain, existing holders will get the 2.0 version through an airdrop. The airdrop allocations are as follows, based on a 1 billion supply:
Pre-attack holders: 35%
Post-attack holders: 10%
Pre-attack aUST holders: 10%
Post-attack UST holders: 15%
Community Pool: 30% (with 10% for developers) controlled by Luna stakers.
The TerraForm Labs wallet will be removed from the airdrop whitelist as well. Terra will be a “fully owned community chain” as a result of this.