Terra (CRYPTO: LUNA) founder Do Kwon has proposed a blockchain hard fork to revive the project’s ecosystem.
What Happened: In an announcement on Monday, Kwon put forward a governance proposal to fork Terra into a new chain without an algorithmic stablecoin.
See Also: WHAT IS FORKING IN CRYPTOCURRENCY?
The new chain will be called “Terra” with the native token LUNA, while the old chain will be dubbed “Terra Classic” and will continue to exist with TerraUSD (CRYPTO: UST) and the token Luna Classic (LUNC).
The new LUNA token will be airdropped to LUNC stakers, holders, residual UST holders, and essential app developers.
As per the proposal, Terraform Labs’ wallet will also be removed from the airdrop to make Terra a fully community-owned chain.
Earlier in the day, Terra confirmed that it has just 313 Bitcoin (CRYPTO: BTC) left out of the 80,000 BTC that had been acquired for its reserves, having sold the vast majority when attempting to restore UST to its peg.
1/ As of Saturday, May 7, 2022, the Luna Foundation Guard held a reserve consisting of the following assets:— LFG | Luna Foundation Guard (@LFG_org) May 16, 2022
· 80,394 $BTC
· 39,914 $BNB
· 26,281,671 $USDT
· 23,555,590 $USDC
· 1,973,554 $AVAX
· 697,344 $UST
· 1,691,261 $LUNA
At the time of writing, the Luna Foundation Guard (LFG) still had $383 million worth of cryptocurrency in its reserves. These funds will be used to compensate the existing LUNA and UST holders, along with key members of the Terra ecosystem, in the blockchain’s planned airdrop.
The Terra community will participate in a governance vote on May 18 to determine the outcome of the blockchain.
Industry proponents like Binance CEO Changpeng Zhao and Dogecoin (CRYPTO: DOGE) creator Billy Markus have previously voiced skepticism about forking the Terra blockchain as a way to restore value to the ecosystem.
oh wow. impressed.— Shibetoshi Nakamoto (@BillyM2k) May 14, 2022
just to +1, the plan is actually fucking stupid, the only way it works is for a massive amount of even stupider people want to throw their money in a dumpster fire to save one of the dumbest things to ever happen in crypto
Photo courtesy: Terra