Terra 2.0 Rebirth Plan By Do Kwon Passes Governance Vote

  • 65% of the votes supported Do Kwon’s plan to restart the Terra blockchain.
  • The new chain goes live on Friday, May 27.
  • UST will not exist on Terra’s network.

Proposal 1623 to create a new Terra blockchain passed a governance vote on Wednesday. Do Kwon’s plan features a new token dubbed LUNA 2.0 and an airdrop to holders of the previous LUNA coin.

Despite supposed uncertainty on social media regarding a new chain, 65% of the votes favored launching Terra 2.

The new network will inherit the popular “Terra” name while the old chain has been dubbed Terra Classic. Also, the algorithmic stablecoin UST which fueled Terra’s rise to prominence and triggered the network’s demise will not exist on the new chain.

Terraform Labs CEO unveiled the rebirth plan after UST and LUNA crashed significantly earlier in May 2022. Terra 2.0 features airdrops to the previous token holders and projects willing to migrate to the new chain. The sharing formula also locks up a significant portion of the new coins for vesting periods. 

EWN reported that the official testnet has gone live ahead of the mainnet launch later this Friday. 

It remains unclear if exchanges in South Korea will support the new tokens as investors lost a lot of money on the old network. Also, platforms in Korea are allegedly skeptical about listing LUNA 2.0 with investigations ongoing.

Binance however has released an update on the latest development.