Everything You Need to About The New LUNA Crypto
Earlier this month, the LUNA crypto saw an extraordinary collapse, losing nearly all of its value and causing panic among investors. The ‘de-pegging’ of the TerraUSD (UST) stablecoin was blamed for the crash. The UST price plummeted after losing its dollar value.
According to CoinMarketCap data, the UST price was $0.0623, while the LUNA price was $0.0001409 at the time of writing. Investors have lost faith in the cryptocurrency as a result of the sharp drops, with the Binance exchange even suspending LUNA trading.
Do Kwon, the founder of Terra, unveiled a revival plan called Terra 2.0 to help the ecosystem get back on its feet.
Behind the scenes, efforts to revive the embattled Terra network are still on, and the second iteration of the blockchain is set to launch on the mainnet today.
What is Terra 2.0?
Terra 2.0 refers to the Terra LUNA revival plan 2, as revealed by Do Kwon in Terra’s Research Forum. The plan entails several changes, from a new blockchain to a total token reset.
Earlier this week, Terra’s Life Foundation Guard (LFG) deployed around $1.5 billion in resources to help stabilize the LUNA crypto price. However, as seen in the latest LUNA figures, that didn’t go as planned. Hence, Revival Plan 2 was announced.
TerraForm Labs creator Do Kwon’s plan, dubbed the LUNA rebirth, proposes that a new chain replace the old Terra network. New LUNA tokens will also be replacing the current version of Terra LUNA. It will cut links with the UST stablecoin, which was the source of the crash.
However, the old chain – and old LUNA – will not vanish. They will co-exist. Terra Classic will be the name of the old chain, while LUNA Classic will see the existing LUNA remain.
Terra 2.0 Release Date
The new LUNA will go live today (on May 27) – as the genesis block for the new Terra chain.
Terra has now released the Terra LUNA Core code for the new chain, while the testnet is now live ahead of today’s launch on the mainnet.
Terra 2.0 Airdrop
According to the validator, the Terra 2.0 native asset will be called LUNA, and the old token will be LUNA Classic.
According to the plan, the new LUNA Crypto will be distributed as follows:
- 35% to pre-attack LUNA holders.
- 10% to pre-attack UST holders.
- 10% to post-attack LUNA holders.
- 15% to post-attack UST holders.
- 30% to its community pool.
Terra 2.0 Will Not Share Its History With The Existing Terra Chain
In the Twitter thread, Terra distinguished between a hard fork and a new blockchain network.
A hard fork shares the same history as the old chain, whereas a new chain does not. This means that the new LUNA Crypto from Terra 2.0 will not share any of the current Terra LUNA chain’s history (which will now be called Terra Classic).
As a result, Proposal 1623 is more concerned with the rebirth of Terra LUNA than with adjusting the chain in order to establish a split chain of the current one. On the other hand, Terraform Labs has yet to announce a roadmap for the new Terra 2.0.
DApps To Migrate To Terra 2.0
Terra 2.0 will not share any history with the old chain. Hence current Terra (LUNA) dApps and projects will need to be migrated to Terra 2.0. It’s worth noting that dApps will already exist on the new chain in the event of a hard fork. With Terra 2.0, this will not be the case.
According to Terra, several popular dApps have already vowed to migrate to Terra 2.0 once the new chain is introduced.
Korean FSS Evaluates Coin Risk as Terra 2.0 Passes Vote
Korea’s Financial Supervisory Service (FSS) has indicated that it will standardize assessing virtual asset risks.
This is because, according to a local news report, it is now difficult to protect investors due to the numerous ways that risk is calculated for each virtual asset exchange. While the FSS’s efforts to standardize are still in their early stages, once a legal framework for virtual assets has been established, it is believed that a common evaluation method for all exchanges can be implemented.
Stablenode’s chief operating officer Doo Wan Nam tweeted on Wednesday that representatives from Korean exchanges and officials met at the Korean National Assembly building to discuss the LUNA Crypto and UST concerns. According to Doo, the exchanges stated that the situation was unfavorable and that they would do all possible to protect traders on their platforms.
Crypto Exchanges Welcome ‘Terra 2.0’
Cryptocurrency exchanges that previously delisted or pulled support for Terra LUNA during the event of the crash have welcomed the new chain. The world’s largest cryptocurrency exchange Binance was among the first few platforms to delist Terraform Lab’s tokens from the futures exchange.
Exchanges including Binance, FTX, Crypto.com, Huobi, Bitfinex, Bybit, Gate io, Bitrue, and Kucoin pledged their support for the modified version of the recently collapsed Terra blockchain. Binance stated that it was “working closely with the Terra team on the recovery plan,” while FTX announced that it would support the “new LUNA crypto airdrop and suspend LUNA and UST markets.”
Exchanges including Bybit, Kucoin, Binance, and Crypto.com began voicing their support for Terra 2.0 within minutes of the proposal passing, confirming that users holding LUNA on exchange wallets would be included in the airdrop. Do Kwon stated on Twitter that he had not contacted exchanges to list the new LUNA crypto.