Terra seems to be getting ready for a second coming after the unprecedented collapse of the UST stablecoin, and the LUNA token caused mayhem in the crypto markets. After the Terra community voted overwhelmingly in favor of Do Kwon’s new proposal of a new blockchain without an algorithmic stablecoin, it looks all set to launch on Friday.
Terra’s Revival
After considerable setbacks, it looks like Do Kwon’s plan to revive Terra and its ecosystem seems to be coming to fruition. Earlier, Kwon’s proposal to launch a new Terra blockchain was passed by a significant majority in a governance vote undertaken by the community. Over 65% of the total votes voted in favor of the proposal, while just over 13% of the community opposed it vehemently, voting “no with a veto.” This figure was 20.2% short of the figure needed to nullify the new proposal.
A New Blockchain, A New Token
The developments are, frankly, quite stunning, coming after the $40 billion collapse of Terra that led to thousands losing pretty much all that they had. The revival plan proposes the creation of a new blockchain and a new LUNA token. However, unlike the original, there will be no algorithmic stablecoin. The proposal also states that the new avatar will be called Terra, while the existing chain will be renamed to Terra Classic.
The New Token Distribution
The new and approved proposal will airdrop LUNA tokens according to a set distribution to those investors that previously held LUNA and UST tokens prior to the crash. According to the new distribution plan, 30% of the supply will be controlled by staked governance, and a further 10% going to ecosystem developers. The remaining tokens will be airdropped to UST, aUST, and LUNA holders.
The aUST token is a representation of the tokens that were staked in the Anchor Protocol, which was Terra’s lending product, offering investors yields of up to 20% APY. Anchor Protocol also faced an unprecedented crash during Terra’s upheaval.
Do Kwon Still In Hot Water
Do Kwon has been rather busy dealing with the significant community backlash over the past couple of weeks and breathing new life into the Terra ecosystem. However, he is also the subject of a fraud lawsuit from disgruntled investors. Prosecutors are also looking into him for his endorsement of the Anchor Protocol, which they alleged, was like a Ponzi scheme.
Interest In LUNA 2.0 Surges
Meanwhile, with the launch looming on the horizon, there has been a surge in the new blockchain. Data has suggested that interest in the keyword “LUNA 2.0” has increased dramatically. Interest in the new blockchain was driven by search queries in Finland, The Netherlands, Spain, Romania, Singapore, Germany, Italy, Poland, Switzerland, and Australia.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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