The community has endorsed Terra’s “Proposal 1623,” which outlines intentions to resurrect the collapsed Terra environment. Do Kwon, the Terra ecosystem’s founder, offered a resurrection plan on 16 May, one that included the establishment of a new blockchain and the issuance of fresh LUNA tokens.
Kwon’s proposal received 65.55% of the total votes cast. Only 13.2% of those voting against the fork said “no with veto.” The option to abstain was chosen by little over 20% of voters. Terraform Labs (TFL), the corporation that supports all things Terra, will go ahead and install the new Terra blockchain after receiving community approval. The relaunch date has been set for 27 May.
A new LUNA token in line
There’s also a new LUNA token to go with it. The extra LUNA tokens will be distributed in three ways: 30% to the community pool, 35% to LUNA holders prior to the ecosystem crash, 10% to pre-crash Anchor-staked UST (aUST) holders, 10% to post-crash LUNA holders, and 15% to post-crash UST holders.
Snapshots of user balances were taken before and after the Terra ecosystem crashed. Users who remained with the company throughout the time period are eligible for a variety of distributions, including pre- and post-crash allocations.
In industry language, Do Kwon recommended a “hard fork,” or the separation of the blockchain into two pieces. Terraform Labs, the cryptocurrency project’s original operator, later altered that idea to leave the existing blockchain open to users and instead, create a brand new blockchain.
Terra has been hit by one of the worst crypto-falls ever, one which started at the beginning of this month. The outcome of Wednesday’s vote on Kwon’s plan, on the other hand, has given the community a light of optimism. It’s unclear whether it’ll be able to totally recover.
Binance, the world’s most popular cryptocurrency exchange, has announced that it will work closely with the Terra ecosystem to strengthen the project. An excerpt from the announcement claimed,
“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.”
Back from the backlash
After many people had already voted in favour of the original proposal, Kwon stirred anger by changing it on 20 May. The update changed the number of tokens that will be distributed to existing LUNA holders and investors who bought LUNA after the company went bankrupt. Many people complained that the change was unfair to those who had already voted and weren’t constantly scrutinising the proposal for changes.
However, they soon changed their thoughts about seeking reparations from project owners.
Huobi Global has also shown support for the Terra ecosystem’s reversal, announcing on Twitter that the site will offer LUNA 2.0 whenever it is released.