Work continues behind the scenes to revive the sick Terra Network. The second iteration of blockchain will be launched on the mainnet this week.
Now there is Terra Proposal 1623 to rebuild the collapsed ecosystem by branching out the blockchain and restarting with new tokenomics. The proposal has garnered great support, especially from those who suffered heavy losses in the sinking of UST and LUNA.
At the end of last week, three amendments to the proposal were released, which affected those who had tokens both before and after the “attack”. The official Terra Twitter account also announced that there will be no hard fork. Terra 2 will instead be a brand new Genesis blockchain.
On May 25, the Terra validator Orbital Command tweeted a lengthy post detailing the Terra 2 network. The validator also announced that the new chain will go live on Friday, May 27th.
Who gets what?
According to the validator, the new native Terra 2 asset will be named LUNA. The old token is then called LUNA Classic. Four groups are eligible for the new token airdrop.
This includes investors who already had both LUNA and UST before the “attack” or invested after the crash. A snapshot before the crash was taken on May 7, and the snapshot after the crash is on May 27.
LUNA holders who invested before the collapse will receive a 1: 1 airdrop. Those who bought tokens after that will only get an airdrop in the ratio 1: 0.000015 (LUNA is currently trading at $ 0.00016).
The agreement for UST holders is even worse. Those who already had the stack coin before it broke its dollar bond will get new tokens in the ratio 1: 0.033. Those who bought after the collapse will receive new tokens in a ratio of 1: 0.013 (UST is currently trading at $ 0.067).
For example, holding 1,000 UST on May 27 will receive 13 new LUNA tokens. A person with old LUNA on May 27 will only get 0.15 of the new LUNA tokens for every ten thousand LUNAs. Only a third of the entire airdrop takes place on Friday:
“Regardless of your group, you will receive 30% of the airdrop at Genesis (May 27). The rest will be released on a linear basis over 2 years with a 6-month lock-up period.”
The airfall also occurs in a “bound state”. This means that there is a period of 21 days before the token can be transferred. However, it was precisely this delay that caused thousands of investors and stockbrokers to lose millions of dollars when the system collapsed.
Terra rebuilding is too late
Several projects have already announced their support for Terra 2. These include Nebula, Sigma, Prism, Astroport, Phoenix, Nexus, Spectrum, Anchor, One Planet, Random Earth and Coinhall.
However, the big plans to rebuild Terra come too late to the overall crypto market as the mood is already firmly in bearish territory. Year to date, markets have fallen 43 per cent. That equates to a whopping $ 1 trillion in losses. This is the beginning of another long bear cycle.
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