Terra Blockchain to Relaunch
Terra is doing something: A proposal by the founder of the troubled Terra ecosystem to save the project has been approved.
It’s official: Terra’s blockchain is going to be resurrected.
Votes have now closed — with 65.5% voting for a new network to be established… without the controversial UST algorithmic stablecoin.
Another 21% abstained, and 13.2% chose the “no with veto” option — far below the 33% needed to stop the proposal from stalling.
Outlining the proposals, Terra’s co-founder Do Kwon had argued that the “ecosystem and its community are worth preserving,” adding:
“Terra’s app ecosystem contains hundreds of developers working on everything from DeFi to fungible labor markets, state-of-the-art infrastructure and community experience.”
He went on to claim that Terra Station has more than one million users — not to mention “strong brand recognition and a name that almost everyone in the world will have heard about. “That being said, the brand may have taken a bit of a dent.
The proposal’s approval means that the new network is scheduled to launch on Friday, with a fresh round of LUNA tokens airdropped to existing investors.
The old Terra blockchain will be rechristened Terra Classic, while the old iteration of the altcoin will now be known as Luna Classic.
Drawing parallels to Ethereum, which enacted similar measures back in 2016, Kwon wrote:
“$UST peg failure is Terra’s DAO hack moment — a chance to rise up anew from the ashes.”
Will This Work?
Developers who are tasked with building essential apps will receive 0.5% of the total supply of new LUNA tokens to help them finance the project.
Meanwhile, 35% of tokens have been earmarked for those who owned LUNA before the attack — with 10% set aside for those who continued to hold the altcoin throughout its dramatic plunge from $83 to below one cent. Compensation will also be given to those who owned the embattled UST stablecoin.
Not all who commented on the proposal were in favor – some were very angry. One of them, Matt21621, claimed he lost more than $1 million in UST and wrote:
“You could have stopped the chain and then just stopped trading. Investors’ lives are in shambles. I will never support anything you do again. And I am in disbelief at your audacity. I have no words Do. You’ve stolen everything from me and many I know. I hope you don’t get a round two and I will spend every waking moment of the rest of my life to ensure you don’t.”