Key takeaways:
- The Terra team announced on Twitter earlier today that the new Terra blockchain is expected to launch on Saturday
- The new Terra chain will be mostly the same as the “old” Terra chain with an important distinction that it won’t have algorithmic stablecoins
- The old chain will be renamed to Terra Classic and its primary token to Luna Classic (LUNC)
New Terra chain and its native LUNA token to launch on May 28 at around 06:00 AM UTC
The Terra team has announced on Twitter that the new Terra blockchain–also referred to as Terra 2.0–is expected to launch on Saturday, May 28. The new Terra chain will see most of decentralized applications (dApps) and blockchain capabilities be migrated from the original to the new chain. A notable exception are algorithmic stablecoins, including TerraUSD (USDT) and TerraKRW (KRT), which won’t make their way to the new network.
1/ Yesterday, we said Terra 2.0 is coming. Tomorrow, it arrives.
The community has been working around the clock to coordinate the new chain’s launch. Subject to potential change, we expect Terra to go live on May 28th, 2022 at around 06:00 AM UTC.
— Terra ? Powered by LUNA ? (@terra_money) May 27, 2022
According to recently published Terra documentation, the new Terra blockchain will retain the naming convention of the original chain. The new blockchain will thus be called “Terra” and its new primary asset “LUNA”. On the other hand, the old blockchain will be renamed as Terra Classic, while the old token as Luna Classic (LUNC). The team will follow the same naming convention when it comes to algorithmic stablecoins – TerraUSD will become TerraClasicUSD (USTC), TerraKRW will become TerraClassicKRW(KRTC), etc.
The launch of the new Terra blockchain comes roughly three weeks after the once second largest DeFi ecosystem suffered a monumental market collapse as a result of its primary UST stablecoin losing its $1 peg. In the aftermath of the LUNA and UST market crash, speculations arose that the currency was a victim of a potential price manipulation attack.
The proposal by Terraform Labs CEO Do Kwon to launch a new Terra blockchain without algorithmic stablecoins-arguably the biggest design vulnerability of the original chain-passed on Wednesday with roughly 65.5% of the votes having been cast in favor of the Terra “revival”.
As a part of the proposal, holders of LUNA on the “old” blockchain and other stakeholders will be airdropped new LUNA tokens based on the “pre-attack” and “post-attack” on-chain snapshots. A total of one billion new LUNA tokens will be distributed among eligible users. For a detailed breakdown of the airdrop token distribution, click here.
It is worth noting that in recent days, several major cryptocurrency exchanges–including Binance, Bybit, Huobi, Bittrex, Kucoin, and Bitfinex–publicly expressed their support for the new Terra chain.
