- The Terra project is to be reborn after a majority vote to launch a second iteration
- The new Terra will have no UST stablecoin
- LUNA tokens will be airdropped to a selection of holders and the community
The Terra protocol will live again after a controversial plan to resurrect the protocol received 65% of a community vote. Terra USD and the LUNA token collapsed earlier this month, losing many vast sums of money and resulting in legal proceedings against various entities involved in the project, including founder Do Kwon. However, a resolution has now been approved to raise a new Terra from the ashes, with over 200 million people voting to press ahead with the new incarnation.
2/ The Terra Ecosystem Revival Plan – which has everything you need to know about our path forward – can be read in full here.https://t.co/6ZRk4AdpRu
— Terra 🌍 Powered by LUNA 🌕 (@terra_money) May 25, 2022
May 16 Plan Survives Vote
The plan to revive Terra was put forward by Kwon on May 16, a plan that ditched the idea of a stablecoin and had a primary goal of making some (but not all) LUNA and UST holders whole. Kwon has perpetually insisted that his aim is to continue the building that is taking place on the Terra network, but there is huge pressure on him to dig those who experienced huge losses out of a hole.
Terra Mk. II will retain the original name Terra (LUNA), with the old chain renamed to Terra Classic with an LUNC token. Kwon originally described the revival plan as a “hard fork”, but this was later amended by Terraform Labs. Kwon explained that despite its collapse Terra has “strong brand recognition and a name that almost everyone in the world will have heard about”, which is right but for the wrong reasons, although Kwon still clearly sees this as a plus.
The new Terra blockchain will go live tomorrow, with Terra describing how the all important LUNA airdrop is going to go down:
6/ Token distribution details can be found in the governance proposal, but to summarize:
● Community pool: 30%
● Pre-attack $LUNA holders: 35%
● Pre-attack aUST holders: 10%
● Post-attack $LUNA holders: 10%
● Post-attack $UST holders: 15%— Terra 🌍 Powered by LUNA 🌕 (@terra_money) May 25, 2022
LUNA Value Depends on Market Sentiment
Of course, the ability of former LUNA holders to be made whole depends entirely on whether the market is willing to take a gamble on LUNA again and buy these tokens from the sellers, something that is by no means guaranteed, and it will be very interesting to see where the market decides to pitch the value of the new LUNA token.
Even a successful reboot will not be enough to stop investigations into Terraform Labs, the Luna Foundational Guard, and Do Kwon himself, with Korean financial crimes services investigating the project and freezing funds on exchanges, while a class action lawsuit against Do Kwon himself has already been launched.
