On Monday, Do Kwon, co-founding father of the troubled Terra Luna blockchain, announced a revised intend to restore the ecosystem after a mix of significant market volatility and natural protocol design flaws easily wiped out a majority of the blockchain’s market cap. As relayed through Kwon, Terraform Labs will help with a brand new governance proposal on May 18 to fork the Terra Luna blockchain known as Terra (token name: LUNA).
However, the brand new chain won’t be from the TerraUSD (UST) stablecoin. Meanwhile, that old Terra blockchain continuously exist with UST and will also be known as Terra Classic (LUNC). Under Kwon’s plan, if passed, the brand new LUNA blockchain goes survive May 27.
Underneath the proposal, new LUNA tokens is going to be airdropped to LUNC holders, UST holders and essential developers from the Terra Classic blockchain. Additionally, Terraform Labs’ wallet using the address terra1dp0taj85ruc299rkdvzp4z5pfg6z6swaed74e6 is going to be taken off the whitelist for that airdrop, therefore making Terra a completely community-owned chain. The suggested way to obtain LUNC is limited to 1 billion, with 25% visiting the community pool, 5% to essential developers and 70% likely to LUNC and UST holders at various snapshots of occasions in May, susceptible to vesting conditions.
Earlier today, the Luna Foundation Guard, the ecosystems’ steward, disclosed it consumed a massive part of its cryptocurrency reserves attempting to defend UST’s peg during market sell-off. Consequently, it’s unlikely the Terra ecosystem can salvage itself without the assistance of exterior capital. Changpeng Zhao, Chief executive officer of Binance, stated he would support Terra’s community but want to see more transparency in the entity regarding recent occasions.
2/ It’s been inspiring to take part in the dynamic discourse concerning the best next steps for Terra. Taking feedback in the community and thoughtful proposals, I must suggest the next for that path forward.https://t.co/E13VI8bkLh
A thread on the reasoning:
— Do Kwon (@stablekwon) May 16, 2022