Terra Community to Vote on Chain Forking — Airdrop a Billion New Tokens to Network Participants in May
Following Terra’s UST implosion, Do Kwon, the blockchain project’s founder, has been actively debating Terra ecosystem resurrection strategies, and one specific proposal will be voted on May 18. The goal is to fork the blockchain into a new chain without an algorithmic stablecoin, and the freshly created network tokens will be airdropped to Terra ecosystem members and holders. The Terra blockchain ecosystem was destroyed last week, and the project’s native currencies lost substantial value. At the time of writing, a single LUNA token is worth less than a US cent, whereas the once-stable coin terrausd (UST) is worth $0.09 per unit. Terra’s developers — Terraform Labs — and the community have been debating how to repair the project’s damage and return value to blockchain participants and holders over the previous several days. Do Kwon, Terra’s founder, presented a resurrection plan on May 16 to address the project’s issues, and the proposal will be voted on Wednesday, May 18.
The “Terra Ecosystem Revival Plan 2” plan seeks to fork the blockchain into a new chain that does not include an algorithmic stablecoin. The previous chain will be known as “token Luna Classic or LUNC,” while the new chain will carry on the original identity by being known as “Terra LUNA.” Following the split, the new tokens will be distributed through airdrop to Luna Classic holders, stakeholders, application developers, and residual UST holders. Terraform Labs’ (TFL) wallet will be completely removed from the airdrop. According to Kwon, the “Terra environment and its community are worth maintaining,” and the Terra application ecosystem includes hundreds of developers. Terra Station has over a million members globally, and despite the current backlash, Kwon feels “[Terra has] significant brand awareness and a name that virtually everyone in the globe will have heard of.” 25% will be distributed to the community pool for staked governance, while the remaining 1% will be granted to important developers with no lockup term. After a one-year cliff and a four-year vesting period, 4 percent will be distributed to critical developers. Except for TFL, all bonded and unbonded LUNA stakeholders will receive 35%. Vesting times will differ for wallets containing one million LUNA or less.