IS LUNA REBORN WITH THE 2.0 UPDATE?
The World (LUNA) and UST incident had left many in the crypto space in shock. Many investors lost all their savings, which led to complete destruction. Not only that, but the incident caused many people to lose faith in cryptocurrencies. However, the Terra team has announced plans that could reverse the damage done, although it harbors a lot of suspicion inside.
The proposal of Do Kwon, the creator of Terra, presented a plan that would divide the Terra blockchain into two parts. Although the idea of a hard fork gained support among LUNA holders, it did not receive much support from the community, arguing that Terra (LUNA) tokens should be burned in order to increase the price of the token. However, Do Kwon and Terraform Labs made several changes to the proposal, presenting a new proposal to the Terra community. Following the proposal, the Terra community changed its mind. With the voting coming to an end, Terra announced on Twitter very recently that it will launch a new blockchain that will be separate from the genesis chain.
FOLLOWING THE ANNOUNCEMENT, LUNA PRICE JUMPED
Terra (LUNA) rose 15% to its intraday low of $0.0001548 following the announcement.
WHAT IS LUNA 2.0?
Luna 2.0 will be a brand new Terra blockchain token designed to save the Terra ecosystem following the collapse of the stablecoin UST.
Do Kwon, the creator of TerraForm Labs, proposes to replace the existing Terra network with a new chain. Luna 2.0 will also replace the current version. The source of the crash, UST, will cut ties with the stablecoin.
The old chain won’t just disappear; they will live together. Terra Classic will be the name of the previous chain, while Luna Classic will see the current Luna remain.
If the current vote is successful, Luna 2.0 will be released on May 27, the same day as the Terra chain’s formation block. However, these dates have not yet been confirmed. Once the rebirth plan is approved, engineers will need to quickly design the new chain to activate it. This date will replace the existing coin, which was officially renamed the Luna Classic coin.
After the launch of the new Terra chain, existing Luna owners will receive the Luna 2.0 version via an airdrop. Airdrop allocations are as follows based on the supply of 1 billion:
Pre-Crisis Owners: 35%
Post-Crisis Owners: 10%
Pre-crisis UST holders: 10%
Post-crisis UST holders: 15%
Community Pool: 30% controlled by Luna’s stakers (with 10% for developers).
The TerraForm Labs wallet will also be removed from the airdrop whitelist. As a result, Terra will be a “fully controlled community chain.”
