Do Kwon, co-founder of the ailing Terra Luna cryptocurrency, unveiled an updated plan to repair the ecosystem on Monday, after considerable market volatility and fundamental protocol design problems took out the market valuation of the blockchain.
Terraform Labs will propose a new governance concept for the Terra Luna blockchain on May 18, according to Kwon.
The TerraUSD (UST) stablecoin would not be connected to the new chain. Conversely, the old Terra blockchain would be dubbed Terra Classic (LUNC) and will continue to operate alongside TerraUSD (UST). The second LUNA blockchain will go online on May 27 if Kwon’s proposal is approved.
As the revised proposal suggests, the LUNC hodlers, TerraUSD (UST) hodlers, and integral developers of the Terra Classic blockchain will be the recipients of the brand new LUNA tokens via airdrop. Moreover, there will be no whitelist for the airdrop for the wallet of Terraform Labs with the following address: terra1dp0taj85ruc299rkdvzp4z5pfg6z6swaed74e6. This will make Terra a chain that is completely owned by the community itself.
The projected LUNC supply is fixed at 1 billion tokens where they will be allocated as follows: 70% to LUNC and TerraUSD (UST) holders, 25% to the community pool, and 5% to important developers, at various points in May, pursuant to vesting requirements.
2/ It has been inspiring to partake in the dynamic discourse regarding the best next steps for Terra. Taking feedback from the community and thoughtful proposals, I would like to suggest the following for the path forward.https://t.co/E13VI8bkLh
A thread on our reasoning:
— Do Kwon 🌕 (@stablekwon) May 16, 2022
The Luna Foundation Guard (LFG) said on May 17 that it has spent an enormous percentage of its cryptocurrency assets defending the TerraUSD (UST) peg during the market sell-off that happened as a result. Hence, it is doubtful that the Terra environment will be able to recover without the assistance of outside funding. Binance CEO Changpeng Zhao stated that he will back Terra’s community but that the company should be more transparent about the latest developments.