Terra’s Blockchain and ‘new’ Luna distribution to be expected soon

Terra 2.0, the so-called revival of the Terra ecosystem after the collapse of its TerraUSD (UST) algorithmic stablecoin, is expected to go live on May 27, 2022, and the airdrop of new Luna tokens will follow according to an announcement from Terraform Labs.

The launch comes after CEO of Terraform Labs Do Kwon’s proposal to revive the beleaguered Terra Blockchain has been approved. The proposal was met with a 65.5% approval rate with over 200 million votes in favor among network validators. While 20.98% abstained their votes and 13.20% vetoed their votes. 

Terra’s revival 

This will lead to the creation of a new Terra Blockchain without UST, which will remain as Terra (LUNA) while the old chain will be dubbed Terra Classic (LUNC). The new chain will focus on attracting DeFi applications.

Investors who held over 10,000 Luna tokens before the UST’s depegging will receive the newly minted Luna tokens periodically to avoid immediate selling. At first, over 30% of the tokens will be unlocked and the remaining 70% will be released over two years. The newly minted Luna tokens will be distributed after six months to these holders. 

Reactions

Exchanges including Binance, FTX, Crypto.com, Huobi, Bitfinex, Bybit, Gate io, Bitrue and Kucoin have pledged support to Terra 2.0. 

With Binance revealing that it will work with the Terra team on the recovery plan, informing its users with a notification that reads ‘The Terra community just voted in favor of the ‘Rebirth Terra Network.’ On the recovery plan, we’re collaborating closely with the Terra team in order to give the best possible service to impacted Binance users. Stay tuned for further information.’

On the flip side, Kwon has been under scrutiny of South Korean authorities and there are reports claiming that Kwon has contacted five South Korean cryptocurrency exchanges asking them to list Luna 2.0, which he denied.

Photo: Twitter @terra_money