Terraform Labs management is going to abandon the TerraUSD algorithmic stablecoin and create a new blockchain, renaming the current network to Luna Classic (LUNC).
Terra network founder Do Kwon proposed plan to save the project by creating a fork of the existing network, which is already approved 65% of its validators. The new network is going to be called Terra (LUNA). According to the presented roadmap of the Terra 2.0 project, the launch of the updated ecosystem should take place on May 27, 2022.
Terraform Labs (TFL) will allocate the majority of the “Updated Terra 2.0 Crypto Assets” to in-house developers as well as U.S. app developers. New LUNA 2.0 tokens will be sent to LUNC holders.
Between those who participate in the Terra ecosystem, it is planned to conduct an airdrop of 1 billion LUNA 2.0. Preliminarily, the future allocation is as follows: 45% for LUNA holders; 10% to AUST holders; 15% to UST holders; 30% to the community pool, incl. 10% of them to developers. The TFL wallet will be removed from the whitelist for distribution to make Terra a full network for the entire community. The target reward for staking is indicated at 7% per annum.
The crypto community is wary of Kwon’s attempt to revive the Terra network. May 25 Terra, the second largest liquidity placement platform with a total value of about $10 billion (TVL), Lido Finance reported on the refusal to restart the Lido protocol in the new Terra 2.0 network.
Binance CEO Changpeng Zhao opined that the Terra 2.0 fork will not work:
“The fork does not add any value to the project, it dilutes the share of the current owners of the asset, and the promotion is just a stage in the initial stage of the distribution of the cryptocurrency.”
Cryptocurrency exchange Coinbase has announced in a blog post that it may be adding LUNA 2.0 to its new listings. However, subsequently changed decision and excluded the Terra assets from consideration. Formally, Coinbase did not give a specific reason for the removal of LUNA 2.0, but given the high volatility of Terra’s assets, the reason may be similar to the reason why the exchange will suspend trading in UST and Wrapped Luna from May 27.
Source: Bits
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