Terra’s Do Kwon has emerged with a new proposal to fix the Terra blockchain and make UST investors whole
Do Kwon suggests forking the current Terra blockchain
The new chain will operate without stablecoins and will be named ‘Terra’, and the old chain will be called ‘Terra Classic’
Both chains will co-exist
New LUNA digital assets will be airdropped to Luna Classic (LUNC) stakers, holders, residual UST holders, and essential app developers
The Founder of Terra, Do Kwon, has proposed a new plan to make LUNA and UST community members whole after last week’s depegging of the stablecoin and price meltdown of LUNA.
Terra to Be Forked into a New Chain Without Stablecoins, Both Chains to Coexist
Do Kwon sees the new plan as ‘a chance to rise up anew from the ashes’ and involves the following:
Forking the existing Terra Chain into a new chain without the algorithmic stablecoin known as UST
The new chain to be called Terra with a LUNA token and the old chain to be known as Terra Classic with a Luna Classic token (LUNC)
The new LUNA tokens are to be airdropped to Luna Classic Stakers, holders, residual UST holders, and essential app developers of Terra Classic
TFL’s wallet (terra1dp0taj85ruc299rkdvzp4z5pfg6z6swaed74e6) will be removed from the whitelist for the airdrop, making Terra a fully community-owned chain
A large portion of the token distribution is to be allocated to providing an emergency runway for existing Terra dapp developers and aligning the interest of developers with the long term success of the ecosystem
The security of the network to be incentivized with token inflation with a target staking reward of 7% per annum
New LUNA Tokens to Make UST Holders Whole
Mr. Kwon’s new plan also proposes 1,000,000,000 LUNA tokens, with a large percentage being distributed to UST holders to make them whole again. He said:
We believe this token distribution, in addition to best efforts by LFG to make $UST holders whole, best solves for the varying interests and time preferences for each stakeholder group, and most important, creates the most viable path to revive the Terra ecosystem.
Furthermore, Do Kwon explained that the new chain was focused on developers. He further requested them to signal support and commit to building on the fork on public channels as soon as possible.
Terra Chain Snapshot on Block 7544914 Created on May 7th
Do Kwon plan also proposes that the snapshot on the Terra Classic blockchain forking the network be taken at block 7544914, which was created on May 7th, 2022. The proceeding snapshot to launch the two chains will then be taken at Terra Classic block 7790000, which is estimated to occur on May 27th, 2022.