Terra Relaunch 2.0
After developers voted in favor of developing a new blockchain, Terra is back with a bang. The initiative, dubbed Terra Ecosystem Revival Plan 2, will debut on May 27 and intends to construct a new Terra chain without algorithmic stablecoin.
On Wednesday, Terra's official Twitter account shared some exciting news. To minimize confusion among new investors, the older blockchain will be called Terra Classic (LUNC), while the new blockchain will be called Terra (LUNA). Huobi, Kucoin, Bitrue, FTX, Bitfinex, GateIO, By bit, and Binance are among the exchanges that have presented support for the project.
The tokens will be allocated to the community pool, pre-attack LUNA and UST holders, and post-attack LUNA and UST holders, according to the plan. Pre-attack holders receive the most significant proportion of 35 percent, followed by community holders at 30%, post-attack UST holders at 15%, and pre-attack UST holders and post-attack LUNA holders at 10%.
LUNA 2.0 will have a hard cap of 1 billion tokens, unlike the first LUNA coin, which had an endless supply.
On the 18th, the Re-launch proposal was formally launched for a vote on Terra Station. On the 1623 proposal, 79.8% of LUNA holders voted, with 66.87 % in favor, 20.65 % abstaining, and 12.48 % highly opposed (0.34 % against + 12.14 % severely opposed). According to the voting rules, there were 368 million votes cast, and the current 196 million votes in favor have crossed the 50% barrier, indicating that the case's outcome has already been determined.
The LUNA resurrection plan eliminates UST to make the network appear more like a decentralized autonomous organization (DAO). Still, it remains to be seen if it will help Terra rebound from its huge plunge, which wiped away $400 billion from the crypto market.
Forking Is Not The Solution
The Terra team stresses that the resurrection plan is not a "fork."
However, on the 24th, Terra's official Twitter said that it had been revealed that several community members (including those from TFL) had referred to the new blockchain suggested in Proposition 1623 as a "fork" rather than a genesis blockchain.
They tweeted, “The revival plan is not proposing a “fork” of the existing chain, but rather the creation of a new one. If Prop 1623 passes, a brand new blockchain (Terra) shall be created starting from genesis block 0 that will not share history with Terra Classic. DApps or assets from the old chain (Terra Classic) will not pre-exist on Terra (as they would in a fork), & will therefore need to migrate. Most of the popular dApps built on Terra Classic have already committed to migrating”
A flaw in the DAO contract resulted in a hard fork in Ethereum, with the old blockchain being known as Ethereum Classic (ETC). As a result, the hard-forked Ethereum, now known as the Ethereum chain (ETH), became the public chain's king. Its success is due to the research and enhancement of the crypto world ecosystem, which allows access to the DeFi world and Metaverse.
How this new blockchain will recover and build a new version of UST is uncertain. Another algorithmic stablecoin is unlikely to succeed since no one will trust it after its prior disaster. This implies that the new LUNA's concept will be questioned from the beginning, and it will have little to no use case at the moment. Many feel that this is an effort to satisfy dissatisfied investors by offering the chance to recoup some of their investment, rather than a serious attempt to resurrect the blockchain and launch a new stablecoin project. If LUNA2 fails, the Terra ecology will very certainly perish.
The chaos that follows each crypto black swan occurrence creates illogical behaviors and anguish, and the resurrection of Terra as Terra 2.0 is no exception. The proposition of resurrecting a project that has died naturally will be extremely tough to pull off, especially given the project's current reputation. Nevertheless, whether or not the project succeeds in the same manner as Terra Classic did, investors will hopefully be able to recoup some of their losses and avoid repeating the same error.