After Terra collapsed UST, blockchain project founder Do Kwon is actively discussing plans to revive the Terra ecosystem, and one specific proposal will come up for a vote on May 18. The plan is to fork the blockchain into a new chain that does not include an algorithmic stackcoin, and newly mined tokens from the network would be airlifted to participants and holders of the Terra ecosystem.
Terra community members plan to vote on a fork proposal to revive the broken project
Last week, the Terra blockchain ecosystem was destroyed and the project’s native tokens lost significantly in value. As of this writing, one LUNA token is selling for less than a penny, and the once stable terrausd (UST) coin is selling for $0.09 per unit. Over the past few days, the Terra team – Terraform Labs – and the community have been discussing how to fix the project and return value to participants and blockchain holders. On May 16, Terra founder Do Kwon published a revival plan to fix the project’s problems, and that proposal will be voted on Wednesday, May 18.
The proposal, titled “Terra Ecosystem Revival Plan 2” aims to fork the blockchain into a new chain that does not involve adding an algorithmic stabelcoin. The old chain will be called “Luna Classic or LUNC token” and the new chain will inherit the original branding and be called “Terra LUNA”. Once separated, the new tokens will be issued to Luna Classic holders, stake holders, app developers and UST residual holders. The wallet owned and operated by Terraform Labs (TFL) will be completely excluded from the eirdrop.
Kwon says that “the Terra ecosystem and its community are worth preserving,” and the application ecosystem built on Terra has hundreds of developers. Terra Station has over a million users worldwide, and Kwon believes that despite recent events, “[Terra has] strong brand recognition and a name that almost everyone in the world has heard of.” The token distribution details note that 1,000,000,000 new LUNA tokens tied to the Terra chain will be issued.
25% will be distributed to the community pool for rate management, and 1% will be allocated to core developers with no lock-in period. 4% will be distributed to core developers after a one-year cliff and four-year vesting period. 35% will go to all bonded and non-bonded LUNA stackers except TFL. Wallets with one million LUNA or less will have other vesting periods. 10% will go to LUNA holders and 25% to UST holders.
Community responses show that people do not agree with the Terra revival proposal
The proposal states that a “pre-attack snapshot” will be taken on the Terra Classic block numbered 7,544,914. The circuit fork will begin a few hours after receipt of the launch snapshot, and the estimated launch date for the new Terra network is May 27, 2022. Many people seem to dislike the plan, while others have been favorable to the proposed idea. One person wrote, “It’s an interesting proposal, and I’m excited for the community to move forward with a new network.” Another person opposed the idea by saying:
No one wants a fork. Just burn the current LUNA and fix the current algorithm to bring back the UST binding.
Some people didn’t like that Kwon said that “Terra is more than just UST.” “I agree that Terra is more than UST,” a person responded to Kwon’s post. “There has to be stability for all 180 fiat currencies. I don’t want a fork in the road. I believe that 99% of the value of Terra remains in the current incarnation of the system.” Kwon believes the proposal is “a chance to rise again from the ashes,” like a phoenix.
In fact, Terra had a set of fiat currencies in addition to the most used and popular UST Stablecoin. Terra’s stabelcoin The stablecoin KRW was also popular, but the token is not tied to the value of the Korean Won. Today, one KRW is worth $0.00079, while the blockchain-based terrakrw token is worth only $0.00006945.
What do you think of the proposal to fork the Terra chain and airmail tokens to network members? Do you think this idea is viable? Let us know what you think in the comments section below.
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