Terra to Launch Spin-Off Blockchain
The governance vote to create a new Terra blockchain with new LUNA tokens (and no algorithmic stablecoin) has passed, Crypto Briefing reported on Wednesday. The new blockchain is scheduled to launch Friday.
LUNA has faced significant pressures in the past weeks that resulted in heavy price down that crashed the token market capitalisation near zero.
Do Kwon’s plan to revive the Terra ecosystem seems to be coming to fruition. The Terraform Labs co-founder and Chief Executive Officer’s proposal to launch a new Terra blockchain was approved in a governance vote Wednesday.
Some 65.5% of the total votes tallied in support of the proposal, while only 13.2% of the ballots strongly opposed it and voted “no with veto,” arriving 20.2% short of the veto threshold that would have nulled the proposal.
The move comes in response to Terra’s $40 billion collapses that transpired earlier this month. The revival plan, submitted by Kwon and supported by Terraform Labs and the Terra Builder Alliance, suggests creating a new blockchain with a new LUNA token.
Unlike the original Terra network, the new one will not be attached to an algorithmic stablecoin. According to the proposal, it is set to be called Terra, while the existing chain that crashed to zero will be renamed Terra Classic.
The approved proposal aims to make Terra investors whole by airdropping the new LUNA tokens—based on a set distribution—to those who held LUNA and UST before and during Terra’s crash.
Per the outlined distribution plan, 30% of the new LUNA supply will be controlled by staked governance, with 10% going to ecosystem developers.
The remaining 70% will be airdropped to LUNA, UST, and aUST holders. aUST represents UST tokens staked in Anchor Protocol, Terraform Labs’ lending product that enticed investors to the network with yields of up to 20% APY.
Anchor Protocol suffered a crash during Terra’s meltdown. Based on the current plan, Terraform Labs will receive any new LUNA tokens from the airdrop. READ: LUNA Valuation Rises as Token Begins to Recover Loss
In the meantime, Kwon, who has been focused on resurrecting the ecosystem and quelling at least some of the community’s backlash over the past two weeks, is reportedly facing a fraud lawsuit from disgruntled investors.
South Korean prosecutors are also reportedly investigating him for endorsing Anchor Protocol, alleging that the product was akin to a Ponzi scheme. # Terra to Launch Spin-Off Blockchain