Terra Community Plans to Vote on Forking the Chain — Launch May Airdrop a Billion New Tokens to Network Participants – Bitcoin News

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. It is planned to fork blockchain and create a new network that doesn’t include any algorithmic stablecoins. Terra ecosystem holders and participants will receive the newlyminted tokens.

Terra Community members plan to vote on a proposal for a fork to revive the Broken Project

Last week the Terra blockchain ecosystem was obliterated and the project’s native tokens lost significant value. One LUNA token trades for less than a U.S. dollar, while the stable coin Terrausd (UST), is selling 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. Terraform Labs (TFL), which owns and operates the wallet, will not be included in the airdrop.

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% of the funds will go to staked governance, while 1% will go to key developers without a lockup. After the completion of a three-year vesting period and a one year cliff, 4% will be distributed to key developers. TFL and all bonded or unbonded LUNA stakers will be eligible for 35%. Different vesting periods will apply to wallets that have less than 1 million LUNA. 10% of the LUNA holders will be rewarded, and 25% to UST owners.

The Terra Revival Proposal is not being supported by the community responses

The proposal says that a “pre-attack snapshot” will be taken at Terra Classic block number 7,544,914. A few hours after taking the launch snapshot, the chain fork is scheduled to begin. An estimated date for Terra Network’s launch in 2022 will be May 27th. While some people don’t like the proposal, others prefer the one that was presented. 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:

A fork is not something anyone wants. You can simply burn the current LUNA, and then fix the algorithm to return 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 don’t want a knife. 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.

Terra had a variety of fiat currencies. Terra’s KRW stablecoin was popular as well, but the token de-pegged from the Korean won’s value. Today, a single KRW equals $0.00079 while the blockchain-based Terrakrw token only has $0.00006945.

What do you think about the proposal that aims to fork the Terra chain and airdrop tokens to the network’s participants? Is this a viable idea? We’d love to hear your opinions in the comment section.

Jamie Redman

Jamie Redman is the News Lead for Bitcoin.com News. He also lives in Florida and works as a journalist covering financial technology. Redman joined the cryptocurrency community in 2011 and has been an active member ever since. Since 2011, Redman has been an active member of the cryptocurrency community. Redman has contributed more than 5,000 articles to Bitcoin.com News since September 2015. These articles are about disruptive protocols that are emerging.