Do Kwon unveils the plan to revive Terra
Terra founder Do Kwon proposed a Revival Plan 2 on Twitter to resurrect the Terra ecosystem
By Shashank Bhardwaj
Do Kwon, the founder of Terraform Labs, officially proposed a revival plan for the Terra ecosystem involving a hard fork and abandoning UST, Terra’s depegged stablecoin. He had tweeted last week accepting the failure of Terra’s stablecoin and acknowledging that the ecosystem needed a fresh start. He had also proposed an informal plan to revive the Terra blockchain.
The current proposal is a follow-up to the informal plan he posted last week. Do Kwon detailed the Revival Plan 2 in a tweet thread on Monday. It talked of the steps the Terra team intends to take to resurrect the network, asserting that the Terra ecosystem was much more than just its failed stablecoin, UST. Earlier, Terra blockchain’s efforts were concerted and concentrated on their algorithmic stablecoin. The proposal will be put for a governance vote on May 18th.
Of the steps suggested, the most significant is the proposed hard fork which will cause the old Terra chain to fork into a new chain sans the TerraUSD (UST) stablecoin functionalities. The old Terra blockchain will be called Terra Classic. The two blockchains will have their separate native tokens. While Terra’s native token, LUNA, would be assigned to the old Terra blockchain (with its ticker changed from LUNA to LUNC), the new Terra LUNA token will be assigned to the newly forked chain.
Only 1 billion new LUNA tokens will be available in Terra 2.0 version. These Terra LUNA tokens will be distributed via an airdrop among the Terra community members. The members that will receive the airdropped tokens include Luna classic stakeholders, Luna Classic holders, residual TerraUSD holders, and Terra Classic core application developers. The Terraforms wallet will be removed from the airdrop whitelist making the Terra blockchain an entirely community-owned chain. Via the airdrop, Terra also wants to compensate the UST and LUNA holders for their losses.
Do Kwon wrote in his tweet, “$UST peg failure is Terra’s DAO hack moment – a chance to rise up anew from the ashes.” DAO hack is a significant exploit when it comes to Ethereum’s history. The hack caused the Ethereum network to fork into Ethereum classic and Ethereum blockchain in 2016. He further said 5 percent of the new LUNA token supply would be allocated to the developers because they would need an emergency budget to build the chain.
Terra’s UST now trades roughly at 1/10th of its intended dollar value. LUNA (LUNC after the hard fork happens) has collapsed to virtually zero post its hyperinflation.
The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash