Do Kwon proposes hard fork to revive the Terra ecosystem

On May 17, Do Kwon published a hard fork proposal and invited the Terra community to discuss in the wake of the Terra blockchain collapse. He put out the proposal on top of his ‘Terra Revival Plan’, which offered a redistribution of US$ 1 billion tokens among Terra’s developers and its community. 

Terraform Labs will put the proposal up for a governance vote on May 18 Asia time. 

The new chain will abandon its algorithmic stablecoin and replace its old native governance token, Luna. The fallen Luna will be changed to LUNC, or ‘Luna Classic’ and the old Terra Blockchain will be renamed ‘Terra Classic’. 

In addition, Terraform Lab’s wallet with the address -terra1dp0taj85ruc299rkdvzp4z5pfg6z6swaed74e6 will be removed from the whitelist for the airdrop. The move will make Terra a fully community-owned chain. LUNC’s supply will be capped at US$ 1billion, 25% of which will be allocated to the community pool on the new chain controlled by stake governance, 5 % to essential developers and 70% to LUNC and UST holders subject to a vesting schedule. 

His proposal did not discuss Luna Foundation Guard’s role in the new Blockchain after it sold nearly all its Bitcoin reserves in an unsuccessful effort to save the collapsed UST. 

Kwon emphasized that upholding the Terra developer ecosystem is of utmost importance and wrote on Twitter that ‘ Terra is more than UST’ and that the developer talent pool is ‘broader and deeper on Terra than most ecosystems’.

UST and Luna price updates

UST is currently trading at an all-time-low of US$ 0.11, rendering the former top three stablecoin by market capitalization nearly worthless. Meanwhile Luna is currently trading at around US$ 0.00019 compared to over US$ 65 last week.

Photo: Terraform Labs, Twitter @stablekwon