Key takeaways:
- Do Kwon’s proposal to “Rebirth Terra Network” received more than 65% of the vote and successfully passed
- The new Terra blockchain will launch on May 28 and will feature no UST stablecoin
- New LUNA tokens will be airdropped to existing LUNA, UST, and aUST token owners
- Several major cryptocurrency exchanges have publicly voiced their support for the new Terra blockchain
Terra Ecosystem Revival proposal receives over 65% of the vote
Do Kwon, the founder of Terraform Labs, the company behind the Terra blockchain, has seen its proposal to “revive” the Terra ecosystem receive more than 65% of the vote. The remaining 21% went for the “Abstain” option, and about 12% for the “No with veto”.
With the vote successfully passed, Terra 2.0 will launch on May 28 at around 06:00 AM UTC, according to an official statement made by the Terra team. The new Terra blockchain will retain the Terra name, while the old blockchain will be renamed to Terra Classic. In addition, the native tokens of the old blockchain will be rebranded to Luna Classic (LUNC). It is worth noting that the new blockchain won’t feature the UST algorithmic stablecoin.
Existing LUNA owners will be airdropped new LUNA tokens according to the following distribution: pre-attack LUNA holders will receive 35%, post-attack LUNA holders 10%, 30% of new tokens will go to the community pool, 15% to post-attack UST holders, and the final 10% to pre-attack aUST holders.
As a reminder, the Terra ecosystem suffered an unprecedented collapse earlier this month, which saw the price of LUNA, the platform’s native digital asset, plummet by over 99.9% and the network’s primary stablecoin lose over 90%. The crypto market is still reeling in from the sudden collapse of the once top 10 cryptocurrency by market cap.
Major crypto exchanges are in favor of the new Terra blockchain
In the 24 hours since the vote to revive the Terra ecosystem passed, several leading cryptocurrency exchanges, including Bybit, KuCoin, Bitrue, Bitfinex, and Huobi, have already publicly voiced their support for Terra 2.0.
Following the final vote tally, the world’s largest cryptocurrency exchange Binance took to Twitter to announce it is “working closely with the Terra team” on a recovery plan.
Binance’s announcement to support the broader cryptocurrency community amid a Terra “rebirth” comes as no surprise – earlier this month, the exchange’s CEO Changpeng Zhao expressed his stance that Binance, despite incurring a significant loss in the Terra downfall, would like to see the “Terra project team compensate the retails users first, Binance last, if ever.”
It will be interesting to observe how the new Terra blockchain and LUNA token will be received by the cryptocurrency community when they launch later this week. At press time, LUNA is trading at $0.000151, far removed from its April ATH of $119.
UPDATE (May 27, 11:30 UTC): Updated the launch date of the new Terra blockchain in accordance with the official statement from the Terra team.
