Yesterday, May 16, the co-founder of the troubled Terra blockchain network, Do Kwon, announced a change in the previously approved strategy to restore the ecosystem. The idea to create a new plan arose against the backdrop of a significant decline in Terra's capitalization in recent days, for which even Kwon was not ready. On May 18, the developer intends to present to the Terraform Labs team a new control system for the Terra fork, better known in the crypto community as LUNA.
Based on the words of Kwon, the new chain will be completely independent - it will not be tied to the TerraUSD (UST) token, as it was before. Along with this, the developer emphasized, that the Terra blockchain will continue to exist and will work, as before, concerning the UST stablecoin, but it will be called differently - Terra Classic (LUNC).
Given the heated situation around the crypto project, Kwon wants to carry out a hard fork as soon as possible. According to him, if everything goes according to plan and his team supports it, the new LUNA blockchain will be launched on May 27th.
In case of a successful launch of the chain, the distribution of new LUNA tokens will take place between representatives of three categories: LUNA coin holders, UST holders, and developers of Terra Classic directly.
Trending: Smart Contracts Audits Startup Hexens Closed $4.2 M Seed Funding
Kwon drew the attention of users to the fact that the Terraform Labs wallet - terra1dp0taj85ruc299rkdvzp4z5pfg6z6swaed74e6 - will be removed from the "white list" and will not be used to distribute tokens. This, the developer emphasized, will help make Terra a network that belongs directly to the community itself.
Even though Kwon does not currently have and cannot have any exact data, the man nevertheless ventured to make public his assumptions regarding the number of LUNC coins that will be distributed among the community. According to him, it is planned to release about 1 billion LUNC. Of these, 25% will immediately be sent to the community pool, 5% will be distributed among the main blockchain developers, and 70%, in turn, will be received by LUNC and UST holders. The distribution process itself, Kwon added, will take place within the framework of various landmark events for the project, the schedule of which can be found in the Network roadmap over time.
Finally, it is worth mentioning that just yesterday, the Luna Foundation Guard announced that they had used up almost the entire stock of digital assets to secure the UST peg. Now it will be very difficult to save the project from collapse without the help of external financing. By the way, the head of the largest cryptocurrency exchange Binance, Changpeng Zhao, spoke about the situation in which the Terra blockchain is now. The man publicly stated that he was ready to provide all possible assistance to the project for its restoration.