Terra 2.0 blockchain is reviving LUNA on Friday, May 27. Does anybody expect it to make the total turnaround after its recent collapse?
Despite the fact that Do Kwon was severely criticized for his Terra and Luna rescue plan, the things are working out fine for him.
Just two weeks after UST stable coin collapse and LUNA token death, Terra company prepared a new chain version dubbed Terra 2.0.
There was a vote about the new chain launch and 65% of responders in the Terra community supported it.
But some say that vote wasn’t going fairly enough, as community members accused Kwon’s company of taking their votes.
Moreover, Terraform platform announced firstly that they would do the fork. And now they are talking about the new blockchain that would bring the level of decentralization ‘never seen before’.
Anyway, LUNA/UST investors are still waiting for results. Do they have a chance to regain money?
Would the new naming help Terra 2.0 and LUNA 2.0?
AS we know so far, the old chain is now Terra Classic with Luna Classic token or LUNC. And the new chain is now Terra with Luna token or LUNA. Of course, the new chain won’t have algorithmic stablecoin, as it was before.
Reborn Luna would be airdropped across Luna Classic stakers, Luna Classic holders, residual UST holders, and essential app developers of Terra Classic on May 27.
Investors who held LUNA tokens before the collapse on May 9 would get 1,1 new LUNA token for every old one they have.
Pre-attack UST investors would get only 0.033 LUNA 2.0 equivalent for every stablecoin.
“Recently, a few community members (including some from TFL) have referred to the proposed new blockchain in Prop 1623 as a ‘fork’ as opposed to a genesis chain. …Note: The revival plan is not proposing a ‘fork’ of the existing chain, but rather the creation of a new one,” Terraform Labs tweeted on May 23.
To clear the difference: the hard fork means that it would share history with the original chain. But according to the Terra managers claim, Luna 2.0 won’t share history with Luna Classic, and it wouldn’t replace it, but run parallel.
Is the new blockchain works for the investors?
According to the documents shared with the community, the pre-attack LUNA investors would have a chance to regain at least some part of their money. One could hope Terra 2.0 and LUNA rebirth could pay off.
In particular, that said:
- For those who have a snapshot balance of less than 10k Luna, 30% will be unlocked at genesis;
- Over 2 years, 70% is vested, and after that, there is a 6-month cliff;
- This is to guarantee that the initial liquidity profiles of tiny Luna holders are identical;
- Luna wallets would cover 99.81% of the total;
- UST holders will receive 20% to 15% of the total;
- The 5% saved is donated to the communal pool.
The company also shared the essential app names which would be in the new Luna web3 ecosystem. NFT exchange, Explorer, Analytics, Wallet, Lending market, Games, Staking derivative, Infrastructure, Payments/onramp, Bridges, Stablecoins, Insurance, and others are among them.
Binance exchange has already supported the rebirth, noting that ‘The Terra community just passed a vote to ‘Rebirth Terra Network’.
“We are working closely with the Terra team on the recovery plan, aiming to provide impacted users on Binance with the best possible treatment. Stay tuned for further updates,” the company tweeted.
Generally, holders of the LUNA token and UST stablecoin collectively lost around $42 billion over the past two weeks. However, $85 million in crypto assets remains in the Terra reserve to compensate them.
So it’s a nice time to be a Terra 2.0 and LUNA investor, right?