The community has authorized Terra’s Proposal 1623, revealing plans to revive the fallen Terra ecosystem. The platform’s founder, Do Kwon, presented a resurrection strategy on May 16. It included the issuance of new LUNA tokens and the launching of a new blockchain.
Fortunately, 65.55% of the casted votes favored the proposal. About 20% of the voters abstained, while 13.2% voted no with a veto. Terraform Labs, Terra’s parenting company, will proceed to establish a new Terra blockchain following the community authorization. The corporation set the relaunch date for May 27.
A New LUNA Coin
Market participants can expect new LUNA tokens. The blockchain will distribute the extra tokens in three methods – community pool (30%), LUNA holders before platform crash (35%), pre-crash aUST (Anchor-staked UST) holders (10%), LUNA holders post-crash (10%), and UST holders after a crash (15%).
The company took snapshots of customer balances pre and post the Terra ecosystem fall. Users that stayed with the blockchain throughout the timeframe will qualify for distributions, including post-crash allocations.
The Terra founder proposed a hard fork or splitting the platform into two (industry terms). Terraform Labs later halted the approach to keep the existing network open to investors and introduce anotherLUNA blockchain.
Terra witnessed the worst crypto-crash ever to happen. That dampened investors’ interest in the crypto world. Meanwhile, Wednesday’s vote on the new plan triggered some optimism within the community. However, no one knows whether the project will resurrect.
Binance, the leading crypto exchange globally, declared working with the Terra community to reinforce the project. The announcement revealed a lucrative treatment for Binance victims.
Back from Criticism
Kwon triggered anger within the community by changing the voted proposal on May 20. The update altered the token compensation amount for existing LUNA investors and those who purchased the tokens when the firm went bankrupt.
Most individuals criticized the change as unfair to individuals that voted. Nevertheless, they changed their views about confronting project owners. Also, Huobi Global supports the Terra ecosystem resurrection, declaring LUNA 2.0 offerings after the release.
What are your views about the Terra ecosystem revival plan? You can comment below.
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