Terra founder Do Kwon on Monday proposed forking the Terra Chain into a new chain without an algorithmic stablecoin. The new Luna revival plan comes in the backdrop of last week’s stablecoin crash following the Terra Network collapse.
Forking Terra (Luna)
The plan includes renaming the old series to Luna Classic (LUNC) and the new series to Terra (tokened Luna – Luna). In making the announcement, Do Kwon called the LUNA community unique and with a builder talent pool that is wider and deeper than most ecosystems on Terra.
Kwon called the LUNA airdrop plans a . explained in Tweet,
The new $LUNA will be broadcast to $LUNC’s stakeholders, holders, remaining UST holders and required app developers. Additionally, TFL’s wallet will be removed from the airdrop, making Terra a fully community-owned chain.
TerraForm Labs will allocate a substantial portion of the token distribution to existing Terra developers as an emergency runway.
“Terra 2.0 focused on developers – developers will receive an immediate emergency allocation of Luna tokens to fund Runway, as well as a pool of tokens to align Base Layer’s interests with those of its builders.”
Luna Revival Plan 2.0
Kwon also stressed on aligning the interests of developers with the long-term success of the ecosystem. Also, network security will be incentivized with token inflation, while targeting rewards of 7% per annum.
TerraForm Labs will put the proposal up for a governance vote on Wednesday. As planned, TerraForm Labs will cut the Terra Core release and provide network launch instructions for validators on Saturday.
The company announced that it will complete the required app developer registration on May 25. This will create the genesis file from the last launch snapshot by May 27th. The company will also launch the network on the same day.
“While UST has been the central narrative of Terra’s growth story over the past year, the distribution of UST has led to the development of one of the strongest developer ecosystems in crypto,” Kwon noted in the announcement.
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