The fork of Terra proposed to the community
This Monday evening, May 16, Do Kwon published a detailed proposal for the fork of the Terra blockchain mentioned on the night of May 13-14. Posted on Agora, the proposal, called ” Terra 2 Ecosystem Recovery Plan will be officially put to the vote on May 18.
Broadly, the idea is similar to the one he had already presented recently: the ecosystem of Terra is rich in valuable projects, talented developers and it benefits from a solid community, which makes, according to Do Kwon, so many reasons to save the structure of the blockchain even without the UST.
The important points of the fork are the following:
- Fork of the current Terra blockchain, which will now be called “ Terra Classic (LUC), to the new blockchain that will keep the Terra name and the LUNA token ;
- The new blockchain will be developed WITHOUT the UST stablecoin ;
- The new LUNAs will be distributed asairdrop between people who have or have had LUNAstaking or not;
- A large portion of these tokens will be distributed to developers of the ecosystem in order to provide them with leeway and convince them to stay for the long term;
- The wallet of Terraform Labs, parent company of Terra, will not be included in the airdrop so that the new blockchain is totally autonomous;
- The staking reward rate of this new inflationary token will be 7%.
Unsurprisingly, Do Kwon therefore opted for a hard fork of the Terra blockchain, which would therefore have the consequence of split the blockchain into 2the old one, Terra Classic, and the new one called Terra.
👉 To understand everything: Why did the UST stablecoin collapse and what is the future of the Terra ecosystem?
Priority to maintaining the foundations
Concerning the developers, the latter will benefit from a “ emergency allowance » consisting of 1% of tokens distributed as soon as the new blockchain is implemented so that they can continue to keep the ecosystem and its applications safe.
4% of all tokens will also be distributed over 4 years to developers in order to reward them, under some undefined rules that must be established by the community through a governance system.
Among the essential applications cited in Do Kwon’s proposal, we find the best known of the ecosystem, such as the platform dedicated to Terra developers, Setten.
We obviously find there theAstroporta reference decentralized finance (DeFi) platform widely acclaimed by the community, the Terra Station walletStarTerra launchpad, Axelar and Wormhole bridges, Nexus Protocol and more.
Technical details and token distribution
A billion LUNA tokens will be distributed as followsin parallel with the help provided to developers:
- 25% for the community pool, controlled by the blockchain governance system;
- 35% to holders of LUNAs in the “Pre-attack” snapshot distributed over 2 or 4 years depending on the LUNAs owned at the time in question;
- 10% for LUNA holders (staking included) who have them at the time of the “Launch” snapshot;
- 25% for UST holders at the time of the “Launch” snapshot – 10% distributed upfront, the rest distributed over 2 years.
The snapshot ” pre-attack ” been taken on May 7 at 4 p.m.. The snapshot ” Launch ” on the other hand will be taken on May 26 around 10 p.m..
According to Do Kwon, Terraform Labs will be responsible for preparing future infrastructure, its wallet, and tools relating to the development of the new ecosystem. Network validators will be responsible for coordinating the launch of the fork following the relative snapshot.
In summary :
- 05/16 : online proposal;
- 05/18 : proposal put to the vote;
- 05/21 : launch instructions made available to validators;
- 05/25 : registration of major apps completed;
- 05/27 : implementation of the “Launch” snapshot, followed by the start-up of the new blockchain.
Although the proposal has just been made and more information can be expected in the coming days, the reactions are for the moment mostly negativepart of the community requesting a burn of surplus LUNAs and not a new blockchain.
An idea recently supported by Changpeng Zhaothe CEO of Binance, who recently said Terra fork would lead nowheresince it “wouldn’t create any new value”, and the most adequate solution would be to use Terra’s BTC stash with proper LUNA burn to straighten the UST peg.
At the time of writing, the LUNA token is at a price of 0.0002 dollars, and the UST is showing a sad 0.099 dollars.
👉 Related: LUNA Token Trading Halted on Crypto.com Due to Pricing Error
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