Terra Community Plans to Vote on Forking the Chain — Launch May Airdrop a Billion New Tokens to Network Participants
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. Tags in this story Airdrop, Airdrop Tokens, Burn, Classic LUNA, Classic Terra, do kwon, Korean Won, KRW, LUNA, Luna Classic, LUNA fork, Network Fork, New Network, Terra Classic, Terra Community, Terra Fork, Terra Founder, terrakrw, Token Airdrop, token distribution, UST
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. Jamie Redman
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today. Square Enix to Reinforce Blockchain Bet, According to Latest Earnings Report NEWS | 11 hours ago Luna Foundation Guard Discloses Usage of Bitcoin Reserves NEWS | 15 hours ago
Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleThe First Rewards Card for the Web3 World by The Crypto Card Club Next articleStudy: Amid Mining Bans, China Still Commands World’s Second-Largest Share of Bitcoin Hashrate Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItDraft Law Regulating Aspects of Crypto Taxation Submitted to Russian Parliament
A bill updating Russia’s tax law to incorporate provisions pertaining to cryptocurrencies has been filed with the State Duma, the lower house of parliament. The legislation is tailored to regulate the taxation of sales and profits in the country’s market ... read more.NFT Sales Volume Saw a Small Uptick This Week — Moonbirds, Mutant Apes Take Top Sales UAE Airliner Emirates to Launch NFTs and Experiences in the Metaverse Goldman Predicts US Recession Odds at 35% in 2 Years, John Mauldin Wouldn"t Be Surprised if Stocks Fell 40% Ethereum Foundation"s Financial Report Discloses It Holds $1.6 Billion in Assets, 80.5% Held in Ether