Terra/LUNA revival plan announced; will people recover their money?
Do Kwon reappeared on Terra forums with a proposal to rebuild Terra and LUNA
Hey guys, hope you’re all doing well.
Today we’ll revise a subject that many of you may be interested in: the aftermath of the LUNA/UST collapse.
Tons of people — myself included — got caught off guard and lost money in this massive fiasco that will go down in crypto’s history books. However, Do Kwon — the head behind the project — reappeared with news that may bring back a spark of hope to investors.
Let’s dive into his “revival plan” — as he called it — for the Terra ecosystem.
Terra is more than $UST
Or at least that is what Do Kwon says.
Although Terra’s growth and UST adoptions responded almost exclusively to a subsidized APY on Anchor, the CEO of Terraform Labs seems confident that the community that surged it is worth the fight.
In an attempt to preserve that community and his “baby” alive, Do Kwon has proposed a plan to rebuild Terra, this time with its users in control.
The plan: Forking a new chain
It’s clear that Terra’s current blockchain is irrecoverable. LUNA supply skyrocketed to almost 7 trillion trying to absorb UST sales — and still failed miserably, with the “stablecoin” now trading at $0.12.
That said, a hard fork pre-collapse seems like the best and easiest way to go. According to Kwon, the new chain will not be based around an algorithmic stablecoin. In other words, UST will disappear.
In case you don’t know, a hard fork is bifurcation of a blockchain from a specific block that creates a new, parallel chain. All the information in the ledger up until the forked block migrates to the new chain.
As a result, the current Terra chain will adopt the name “Terra Classic” and its hyperinflated, worthless LUNA token will become “LUNA Classic ($LUNC).” The new chain and token will then take the original names, “Terra” and “LUNA.”
This new LUNA token will be airdropped across:
- LUNA Classic stakers
- LUNA Classic holders
- Residual UST holders
- Essential app developers of what will be Terra Classic.
The Terraform Labs (TFL) wallet won’t be whitelisted, meaning that the company that once led the Terra ecosystem will not receive any tokens from the airdrop.
LUNA token distribution settings and schedule
The total amount to be airdropped will be 1 billion (1,000,000,00) new LUNA tokens. These LUNA will power the new Terra chain, being distributed according to a set of rules and tranches:
- Community pool, 25%: Controlled by staked governance, 10% earmarked for developers.
- Pre-attack LUNA holders, 35%: All bonded/unbonded LUNA, excluding TFL at “Pre-attack” snapshot; staking derivatives included. Cliffs and vesting periods vary according to balance.
- Pre-attack aUST holders, 10%: 500K whale cap — covers up to 99.7% of all holders but only 26.72% of aUST. 15% unlocked at genesis; 85% vested over 2 years thereafter with 6 month cliff
- Post-attack LUNA holders, 10%: Staking derivatives included. 15% unlocked at genesis; 85% vested over 2 years thereafter with 6 month cliff.
- Post-attack UST holders, 20%: 15% unlocked at genesis; 85% vested over 2 years thereafter with 6 month cliff.
As you can see, the plan aims to assist developers in migrating to the new chain by granting them new LUNA tokens, as well as compensating the community for their losses.
As for the snapshots, they are defined as follows:
- “Pre-attack” snapshot: Terra Classic block 7544915.
- “Post-attack” snapshot: Terra Classic block 7790000.
ELI5: What does this mean for plebs?
Essentially, if you held any LUNA in your Terra wallet at block 7544915, you will receive a part of the airdropped tokens. This applies for bonded and staked LUNA too.
On the other hand, if you didn’t have any LUNA but did hold UST, it gets a little trickier. Apparently, the “pre-attack” snapshot only considers aUST, so you’ll only be eligible for compensation if you had your UST locked on Anchor.
However, if you’re still holding you devalued UST and LUNA on your wallet, you are also entitled to receive the airdrop. Just keep them on your wallet until block 7790000 and you should receive LUNA on the new chain after launch.
This has led to controversy, as people who lost money during the depeg could suffer from dilution by opportunists buying UST today — at $0.12 — and make it in the “Launch” snapshot.
What’s your opinion?
Definitely a controversial plan in my opinion, but it’s a start. In his favor, at least Do Kwon is trying to make investors whole again.
What do you think? Will this plan work? Will Terra recover investors’ trust and confidence; or does any attempt to revive it just delays an inevitable death? I want to know what you think!
As always, remember to stay safe and do your own research before putting money anywhere. If you want to read the full proposal, you can find it here.
Thank you for reading and have nice week!
Did you like this story?
I’m glad you did! My name is Santi. I enjoy and write about video games, cryptocurrency, and pop culture. If you’d like to read more content like this, consider following me on Medium and Twitter. I’d really appreciate it!
Thank you for your support!
I’m an independent writer and don’t get paid for my stories. If you want to support me with whatever amount you want, I’ll be extremely grateful!
- My multi-chain address (Ethereum, Avalanche, Polygon, BNB Chain): 0x9a9AB154AeEA167AfDF5aE1A88955EAc9AdF5807
- My BTC address: bc1q9h509sea3y7zcjp24dqjpucfq44r0ueltz3z3cyh67qlhvsflrwqzt6pr0
- Godex.io Review | Invity Review | BitForex Review
- 10 Best Books on Crypto | 5 Best Crypto Bots in the UK
- Koinly Review | Binaryx Review | Hodlnaut vs CakeDefi
- MoonXBT vs Bybit vs Binance | Hardware Wallets
- Huobi Trading Bot | How to buy ADA | Geco.One Review
- Binance vs Bitstamp | Bitpanda vs Coinbase vs Coinsbit
- How to buy Ripple (XRP) | Best Crypto Exchanges in Africa