key takeaways
- Kwon’s proposal to launch a new Terra blockchain without an algorithmic stablecoin has passed.
- 65.5% of the votes supported the proposal, while only 13.2% strongly opposed it.
- The new blockchain, with the new LUNA token airdropped for older UST and LUNA investors, is set to launch on Friday.
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The governance vote to create a new Terra blockchain with the new LUNA token (and no algorithmic stablecoin) has passed.
Terra will launch new blockchain
Is Kwon’s plan to revive the Terra ecosystem seem to be coming true?
A proposal by the co-founder and CEO of TerraForm Labs to launch a new Terra blockchain was approved in a governance vote on Wednesday. 65.5% of the total votes voted in support of the proposal, while only 13.2% of ballots strongly opposed it and voted “not with veto”, 20.2% below the veto limit that would have vetoed the motion.
Mow The fall comes in response to Terra’s $40 billion collapse that occurred earlier this month. The revival plan, presented by Kwon and supported by TerraForm Labs and the Terra Builder Alliance, suggests the creation of a new blockchain with a new LUNA token. Unlike the original Terra Network, the new one will not be tied to an algorithmic stablecoin. As per the proposal, it is set to be called Terra, while the current series which crashed at zero will be renamed Terra Classic.
Accepted offer aims to make Terra investors whole by circulating new LUNA tokens—based on a set distribution—for those who held LUNA and UST before and during Terra’s crash. As per the distribution plan outlined, 30% of the new LUNA supply will be handled by staked governance, 10% will go to ecosystem developers. The remaining 70% will be channeled to LUNA, UST and aUST holders. aUST represents the UST token staked in Anchor Protocol, TerraForm Labs’ loan product, which attracted investors to the network with returns of up to 20% APY. Anchor Protocol crashes during Terra’s meltdown. Based on the current plan, Terraform Labs will receive any new LUNA tokens from the airdrop.
Meanwhile, Kwon, who over the past two weeks has been focused on reviving the ecosystem and quelling at least some community backlash, is reportedly facing fraud lawsuits from disgruntled investors. South Korean prosecutors are also investigating him for allegedly supporting the Anchor protocol, alleging that the product resembled a Ponzi scheme.
The new blockchain is set to launch on Friday.
Disclosure: At the time of writing, the author of this article owns ETH and several other cryptocurrencies.