A new and improved version of the Terra blockchain will be released later this week after the long-awaited revival plan receives majority approval.
This morning, we reported that the chain vote for the Terra revival plan proposed by founder Do Kwon had closed, with 65.5% of the votes in favor. The favorable count will imply the implementation of proposal #1623, which involves the creation of a new chain of blocks, commonly called ” Terra 2.0 “.
The revival of the Terra ecosystem seeks to address the current crisis of the project after the decoupling of its algorithmic stablecoin TerraUSD (UST) and the collapse of its native LUNA token two weeks ago. The new Blockchain, which will leave the failed UST behind, will distribute LUNA 2.0 tokens among holders to offset losses. It is expected to be released on May 27.
Binance Supports Terra 2.0
Amid the expectations of what will be a new opportunity for Terra, the community and members of the crypto space are preparing to arrive at the renewed network. Among them, some cryptocurrency exchanges have already announced their support for the plan and the listing of the new LUNA token, which will keep its original name.
It is worth noting that the new blockchain will be named Terra, while the old network will be renamed Terra Classic. The original LUNA tokens corresponding to that chain will be renamed LUNA Classic (LUNC).
Binance, the world’s largest cryptocurrency exchange, has also announced its endorsement. While a listing for the new Terra token has not been confirmed, the company indicated that it is working “ closely with the Terra team on the recovery plan, to provide affected users on Binance with the best possible treatment.” possible .” The exchange recommended its users keep abreast of its information channels for future updates.
The Terra community just passed a vote to ‘Rebirth Terra Network’.
We are working closely with the Terra team on the recovery plan, aiming to provide impacted users on Binance with the best possible treatment. Stay tuned for further updates.
— Binance (@binance) May 25, 2022
LUNA Revival Plan
To rescue the Terra ecosystem, Kwon introduced proposal #1623, which aims to create a new Terra blockchain whose mechanism will leave the failed UST behind and distribute new tokens to current LUNA owners.
Amidst the controversy over the collapse and the various accusations against Kwon, the Terra community has exercised their voting power on the proposal. Although many observers have criticized it and Kwon himself introduced changes in the middle of the vote, the proposal seems to have the approval of the majority of the community.
According to a previous report, the vote only needed 188 million LUNA in favor of a veto of more than 33% to pass, so it seems that fate has already been decided now that that number has been surpassed.
It Will Not Be A Hard Fork
A few hours after its approval, the proposal continues to generate many doubts among community users about what will happen with the Terra network. Many members – including Do Kwon – had referred to the initiative as a hard fork. However, the Terra team has taken to Twitter to clarify this point.
1/ Recently, a few community members (including some from TFL) have referred to the proposed new blockchain in Prop 1623 as a “fork” instead of a genesis chain.
Note: The revival plan is not proposing a “fork” of the existing chain but rather the creation of a new one 🧵.
— Terra 🌍 Powered by LUNA 🌕 (@terra_money) May 23, 2022
The term hard fork refers to the division of a chain of blocks in which a specific protocol is executed with different rules than the existing ones, resulting in two separate chains. In this case, it was anticipated that Terra’s proposal would trigger an upgrade to create a new blockchain.
But instead, the team has explained that the plan is to create a new network from scratch. That is to say that “ Terra 2.0 ” will not share its history with the current Terra chain, as the tweet thread explained. Creating a new chain also means that decentralized applications (DApps) or assets built on top of the current Terra will not pre-exist in the future network (as they would in a fork) and thus will need to migrate. Some of the significant protocols have already committed to migration.
Trading support for LUNA 2.0 from significant crypto exchanges appears to be of paramount importance to many of the project’s investors. According to the revival plan, the new currency will be distributed by airdrop among Terra holders. The distribution will be based on the number of tokens for each LUNA and/or UST holder, depending on their ownership before or after the attack.
LUNA 2.0 will have an initial supply of 116 million tokens, with plans to increase to 182 million after a year.