After the Terra Ecosystem’s stablecoin UST and cryptocurrency LUNA took a fall earlier this month, taking down the crypto markets with it, Terraform Labs CEO Do Kwon presented a strategy to resurrect the system nine days ago. As of right now, the community has approved Terra’s idea. Terra’s official Twitter account stated on Wednesday, “Terra 2.0 is coming.” The Terra ecosystem overwhelmingly approved Proposal 1623, which urged the creation of a new blockchain and the preservation of our community.
With the plan, a new layer-1 Terra blockchain sans its algorithmic stablecoin will really be created. The business tweeted that the new blockchain will be called Terra (LUNA) and the existing blockchain will be called Terra Classic (LUNC). There should be no confusion between the new Luna token and the previous one with the same name (confusing, I know.) According to statistics from Terra Station, the proposal received 65 percent of the vote, or around 200 million votes, while about 21 percent, or 54 million votes, were cast in abstention, and about 13 percent, or 41 million votes, were cast in opposition. One vote per token, not per user, is cast based on LUNA token ownership.
The relaunch plan will go live on May 27 now that it has crossed its threshold. The community members who never traded their previous LUNA tokens or UST stablecoins throughout the collapse of the ecosystem will get Terra tokens via airdrop, according to the proposal’s provisions. According to Terra, the wallets connected to Terraform Labs and Luna Foundation Guard will not be on the airdrop whitelist. As a result, Terra will become a wholly community-owned chain, she added. We consider this to be a critical step towards enabling our ecosystem.
Investor trust in bitcoin and the larger crypto market has been damaged by the Terra scandal; as a result, they have together lost around $600 billion in value in the past month alone. Regulators are increasingly worried, with figures like Christine Lagarde, president of the European Central Bank, and Janet Yellen, chair of the Federal Reserve, urging for immediate regulation of cryptocurrency, particularly stablecoins.