The ‘New’ Luna Will Be Distributed In The Following Ways
Following the implosion of the terra USD (UST) algorithmic stablecoin earlier this month, a snapshot of the Terra blockchain will be taken later this week in preparation for the launch of “Terra 2.0,” a “rebirth” of the Terra ecosystem. The revival plan is now moving forward after a 65 percent acceptance rate in a vote among network validators on Wednesday. Investors who owned over 10,000 LUNA tokens prior to UST’s crash will receive fresh tokens on a regular basis to discourage fast dumping.
Over 30% of their tokens would be released immediately, with the remaining 70% distributed over the next two years. New tokens will be distributed to such holders after six months. Following the implosion of the terraUSD (UST) algorithmic stablecoin earlier this month, a snapshot of the Terra blockchain will be taken later this week in preparation for the launch of “Terra 2.0,” a “rebirth” of the Terra ecosystem.
Terra will be able to distribute the freshly issued LUNA tokens to holders of the old LUNA tokens via a snapshot, which is a recording of the state of a blockchain at a certain moment in time. In principle, this would allow existing holders to recoup some of their lost investment value while also encouraging the use of the new blockchain. The Terra 2.0 snapshot is set to be released on Thursday. “According to block timings, the post snapshot block, 7,790,000, might occur as early as May 26, 2022, 16:20:00 UTC,” Terra developers said on Tuesday.
Early in May, UST lost its peg to the US dollar, plummeting to as low as 7 cents in the weeks that followed, resulting in a 99.7% drop in the price of its related luna (LUNA) token and over $28 billion in withdrawals from Terra-based decentralized finance (DeFi) apps. This generated outrage among LUNA investors and dealers, as well as public outcry in Terra’s home country of South Korea. Several crypto funds have suffered billion-dollar losses. In the days following the crash, Do Kwon, Terra’s outspoken creator, advocated a fork of the blockchain and an airdrop to UST holders.
Read more: Following the Terra Meltdown, South Korean authorities are looking to scrutinize exchanges more closely.