Terra’s Revival Plan Saves the Protocol, Hard Forking the Chain & Starting From Block Zero
The Terra ecosystem Revival Plan 2 gets approved, creating a new chain and a much-needed fresh start for the protocol.
Following the UST and Terra ecosystems collapse, founder Do Kwon proposed a “Terra ecosystem Revival Plan 2.” This plan ditches the algorithmic stablecoin UST and creates a new chain. The plan was recently approved after an on-chain vote last week, which saw 65.5% of the voters approve it, while 21% abstained, and only 13.5% rejected it.
Terra spoke on the part the community played in keeping the protocol alive: “Terra 2.0 is coming. With overwhelming support, the Terra ecosystem has voted to pass Proposal 1623, calling for the genesis of a new blockchain and the preservation of our community.”
The proposal will see Terra fork into a new chain and leave UST behind. This new model will resemble a typical smart contract chain. The old chain will be called Terra Classic, while its native token Luna will be renamed Luna Classic or LUNC. The new chain will be called Terra, with the token called LUNA.
Prominent digital asset exchange Binance recently revealed that they are working with Terra to help them complete the LUNA 2.0 recovery plan. The collapse of Terra’s UST was criticized by Changpeng Zhao, CEO of Binance, due to its negative impact on the digital asset ecosystem. However, Binance has decided to help them with the best interests of the LUNA and UST communities in mind. Binance has now welcomed the LUNA 2.0 chain and token onto the exchange.
Binance spoke on the revival plan: “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.”
Also, Huobi, Bitfinex, Bitrue, HitBTC, and FTX have all stated that they will also welcome Terra’s LUNA 2.0 and support the new version of the blockchain.
Terra’s LUNA 2.0 Testnet is Already Live
The testnet for Terra’s LUNA 2.0 is already live, and once the new LUNA mainnet is launched, the revival of the native token as a genesis chain will be completed.
Though the decision to split the chain has been criticized, Do Kwon and Terraform Labs state that the event isn’t a hard fork as the new blockchain will start with block zero and abandon LUNA Classic.
Tokens will be airdropped with distribution divided as follows:
- 30% to a community pool
- 35% to pre-attack LUNA holders
- 10% to pre-attack UST holders
- 10% to post-attack LUNA holders
- 15% to post-attack UST holders
Both Terraform Labs and the Luna Foundation Guard were taken off of the airdrop whitelist to “make Terra a fully community-owned chain.”
Also, due to the design of the distribution method, VCs and whales will only receive tokens a year after the launch. This means that only “only 12% of the total LUNA supply will be circulating for the first six months. And much of that will remain staked, not sold. Dumping will be relatively minimal for the first six months, giving the chain a chance to prove itself before the cliffs hit.”
Terra comments on the distribution method on their Twitter account: “The proposal allocates a large portion of the token distribution to provide runway for existing Terra dApp developers and to align the interest of developers with the long-term success of the ecosystem.”
Terra 2.0, as it is being called, is scheduled to launch on May 27th.
Writer, content marketing at Netcoins.