Terraform Labs will submit the proposal for a governance vote at May 18 Asia Time.
Do Kwon, the co-founder of Terra Luna’s troubled blockchain, announced Monday a revised plan for restoring the ecosystem. This was after significant market volatility and inherent protocol design flaws had wiped out the majority of Terra Luna’s market capital. Kwon stated that Terraform Labs will present a new governance proposal to fork Terra Luna’s blockchain, Terra (token number: .LUNA).
The new chain will not be tied to the TerraUSD stablecoin (UST). The Terra Classic (LUNC) will replace the Terra blockchain that was created with UST. Kwon’s plan will see the new LUNA Blockchain go live on May 27, if it is approved.
New LUNA tokens are to be airdropped to LUNC holders and UST holders as well as essential Terra Classic developers. In addition, Terraform Labs’ wallet with the address terra1dp0taj85ruc299rkdvzp4z5pfg6z6swaed74e6 will be removed from the whitelist for the airdrop, thereby making Terra a fully community-owned chain. The proposed supply limit for LUNC is 1 billion. 25% will go to the community pool, 5% goes to essential developers, and 70% to LUNC or UST holders at various snapshots in May, subject of vesting conditions.
The Luna Foundation Guard, the ecosystems steward, revealed that it had used up a large portion of its cryptocurrency reserves to protect UST’s peg in the market sell-off. It is therefore unlikely that Terra’s ecosystem will be able to save itself without external capital. Binance CEO Changpeng Zhao stated that he would help Terra’s community, but would like more transparency regarding recent events.
