A proposal to relaunch the Terra blockchain has passed with a wide margin of 65.5% votes in favor. The new blockchain is called LUNA 2.0 and will come into existence in the next two days, this May 27.
As per the Terra Ecosystem Revival Plan, at least 200 million voted in favor of relaunching the Terra network and 40 million voted against it. There was a significant amount of voters that abstained, roughly 64 million. The voting process was open to LUNA token holders, with one token equal to one vote.
As previously stated, Terra 2.0 will launch this May 27 and will allow the hundreds of applications built on the old Terra blockchain to move to the new one, using the new LUNA token as their main currency. As such, the old Terra blockchain will still exist, but the team has decided to abandon the failed UST stablecoin.
The Terra community seems to be generally bullish on the idea of rebuilding the ecosystem from scratch. However, several members of the community were reluctant at first, as 92% of voters in an online poll of nearly 7000 voted no. Despite the negative feedback, Do Kwon still pushed his proposal not before making several amendments to it.
“We’re inspired to see the Terra community’s energy and enthusiasm for our ecosystem revival plan. With hundreds of developers working on everything from DeFi to fungible labor markets, state-of-the-art infrastructure, and community experience, this ecosystem was important to preserve, and today we have done that together.” —Said a Terra Labs spokeperson (Fortune).
The de-pegging of Terra’s stablecoin UST, which dragged its sister token LUNA along with its collapse, caused a massive bloodbath in the Terra community. Various crypto exchanges had to suspend LUNA trading considering market conditions. The latest exchange to delist LUNA is Bitfinex.
However, there might be a light at the end of the tunnel with this new proposal, which at first was intended to fork the Terra blockchain and was later amended to just restarting the network.
In the hope to bring it back on its feet, major exchanges including Binance and HitBTC are now showing support to Terra by listing the new token, also called LUNA, replacing the old one which is now referred to as Luna Classic (LUNC).
Even the popular Ethereum layer-2 solution Polygon is aiding Terra Labs with a “relatively uncapped” multimillion-dollar fund to help applications and projects migrate to the new Terra blockchain.
As part of the proposal, the Terra team is working closely with several centralized exchanges to support an upcoming airdrop to its community. 35% of the LUNA tokens will be airdropped to holders of pre-attack LUNA and UST. A large chunk of the token distribution will be allocated for Terra dApp developers and to the overall ecosystem.
We have heard horror stories of investors losing hundreds of thousands and even millions of dollars after the LUNA crash, losing their homes, and some of them considering terminating their lives. There was even news of investors filing lawsuits against Do Kwon, sending death threats, and even looking for him at his own house.
Further details regarding the launch of Terra 2.0 are yet to be announced. So far, the majority of the Terra community is supporting the decision to relaunch the protocol —but not surprisingly, some people are still raging over the collapse of UST and LUNA.