After last week’s de-pegging of the stablecoin and price meltdown of LUNA, Terra’s founder, Do Kwon, has offered a new strategy of making LUNA and UST community members whole. The proposed plan also calls for the distribution of 1,000,000,000 LUNA tokens, with a major portion going to UST holders to make them whole again.
“We believe this token distribution, in addition to best efforts by LFG to make $UST holders whole, best solves for the varying interests and time preferences for each stakeholder group, and, most important creates the most viable path to revive the Terra ecosystem.”
Terraform Labs will propose a new governance concept for the Terra Luna blockchain on May 18, according to Kwon (token name: LUNA). The TerraUSD (UST) stablecoin will not be linked to the new chain. Meanwhile, the old Terra blockchain will be dubbed Terra Classic and will continue to exist alongside UST (LUNC). The new LUNA blockchain will go online on May 27 if Kwon’s suggestion is approved.
“While UST has been the central narrative of Terra’s growth story over the last year, the distribution of UST has led to the development of one of the strongest developer ecosystems in crypto,” according to this new proposal, indicating that “the Terra ecosystem and its community are worth preserving.”
The proposal is summarized below:
- “Fork the Terra chain into a new chain without the algorithmic stablecoin. The old chain to be called Terra Classic (token Luna Classic – LUNC), and the new chain to be called Terra (token Luna – LUNA)
“Luna to be airdropped across Luna Classic stakers, Luna Classic holders, residual UST holders, and essential app developers of Terra Classic. - “TFL’s wallet (terra1dp0taj85ruc299rkdvzp4z5pfg6z6swaed74e6) will be removed in the whitelist for the airdrop, making Terra a fully community owned chain
- “Allocate a large portion of the token distribution in 1) providing emergency runway for existing Terra dapp developers 2) align interest of devs with the long term success of the ecosystem
- “Network security to be incentivized with token inflation. Target staking rewards of 7% p.a.“
Do Kwon also stated that the new chain was geared toward developers. He also asked them to show their support and commit to developing the fork as soon as feasible on public channels.
