Key highlights:
- Do Kwon’s proposal for launching a new Terra blockchain has been passed
- Under the proposal, the existing Terra blockchain would be renamed to Terra Classic, with its native token having the ticker LUNC
- A new Terra blockchain with the ticker LUNA will be launched, and stakeholders of the “old” blockchain will receive LUNA airdrops
Do Kwon’s proposal to “revive” the Terra ecosystem passes
The proposal by Terraform Labs CEO Do Kwon to launch a new Terra blockchain without the UST stablecoin has passed successfully. The “Yes” option received 65.5% of the vote, while approximately 21% of the votes were for the “Abstain” option. “No with veto” received 13.2% of the vote, with the remaining 0.33% going to the “No” option.
According to the proposal, the existing Terra blockchain network will be renamed to Terra Classic, and a new network bearing the name Terra will be launched. The existing LUNA cryptocurrency will have its ticker changed to LUNC, while the native asset of the new Terra blockchain will assume the LUNA ticker.
The new Terra blockchain will be launching on May 27. The Huobi cryptocurrency exchange says they will be supporting the new blockchain, while Binance says they are communicating with the Terra team and exploring how to best support their customers as the Terra ecosystem attempts a recovery.
Holders of LUNA on the “old” blockchain and other stakeholders will be airdropped LUNA tokens on the new network according to the following distribution:
- Pre-attack LUNA holders: 35%
- Community pool: 30%
- Post-attack UST holders: 15%
- Post-attack LUNA holders: 10%
- Pre-attack aUST holders: 10%
The “attack” refers to the de-pegging of the UST stablecoin and the subsequent hyperinflation of the LUNA supply. The “pre-attack” and “post-attack” holders will be determined through two snapshots of the Terra blockchain.
Notably, wallets belonging to Terraform Labs and the Luna Foundation Guard will be exempt from the airdrop on the new network.
Even though Do Kwon’s proposal passed, the support from the Terra community was far from unanimous. A part of the community advocated for the Terra ecosystem to be stabilized through token burning instead of launching a new chain.
Projects like Astroport, Spectrum Protocol, HERO and Hex Trust have announced their intentions to continue building on the new Terra blockchain.
The Lido DAO, which oversees the Lido liquid staking platform, is overwhelmingly against relaunching the protocol on the new Terra blockchain. At the time of writing, 94.5% of the vote is opposing the launch.
