Do Kwon proposes Terra hard fork to save ecosystem

Must read

Crypto-gold exchange Vaultoro lowers fees, increases withdrawal limits

Vaultoro, the cryptocurrency-based gold & precious metals exchange, today announced new updates and platform enhancements for users. See below for...

CoinLoan integrates crypto analytics platform Elliptic to guard users from threats

CoinLoin, an EU-licensed crypto lending platform, announced it has integrated security protocols from Elliptic, a blockchain analytics provider. This integration...

SithSwap raises $2.65M to build next-gen AMM on StarkNet

SithSwap will leverage StarkNet’s advanced ZK-rollup technology for stableswaps with ultra-low slippage and near-zero gas...

Bitcoin payments make a lot of sense for SMEs but the risks still remain

The last six odd months has seen the cryptocurrency market witness an unparalleled amount of financial volatility, so much so that the total capitalization...

Terraform Labs will put the proposal up for a governance vote on May 18 Asia time.

4883 Total views

7 Total shares

Do Kwon proposes Terra hard fork to save ecosystem

On Monday, Do Kwon, co-founder of the troubled Terra Luna blockchain, announced a revised plan to restore the ecosystem after a combination of significant market volatility and inherent protocol design flaws wiped out a vast majority of the blockchain’s market cap. As told by Kwon, Terraform Labs will put forth a new governance proposal on May 18 to fork the Terra Luna blockchain called Terra (token name: LUNA). 

However, the new chain will not be linked to the TerraUSD (UST) stablecoin. Meanwhile, the old Terra blockchain will continue to exist with UST and will be called Terra Classic (LUNC). Under Kwon’s plan, if passed, the new LUNA blockchain will go live on May 27. 

Under the proposal, new LUNA tokens will be airdropped to LUNC holders, UST holders and essential developers of the Terra Classic blockchain. In addition, Terraform Labs’ wallet with the address terra1dp0taj85ruc299rkdvzp4z5pfg6z6swaed74e6 will be removed from the whitelist for the airdrop, thereby making Terra a fully community-owned chain. The proposed supply of LUNC is capped at 1 billion, with 25% going to the community pool, 5% to essential developers and 70% going to LUNC and UST holders at various snapshots of events in May, subject to vesting conditions. 

Earlier today, the Luna Foundation Guard, the ecosystems’ steward, disclosed that it used up an overwhelming portion of its cryptocurrency reserves trying to defend UST’s peg during market sell-off. As a result, it is unlikely that the Terra ecosystem can salvage itself without the help of external capital. Changpeng Zhao, CEO of Binance, said that he would support Terra’s community but would like to see more transparency from the entity as to recent events.

2/ It has been inspiring to partake in the dynamic discourse regarding the best next steps for Terra. Taking feedback from the community and thoughtful proposals, I would like to suggest the following for the path forward.https://t.co/E13VI8bkLh

A thread on our reasoning:

— Do Kwon (@stablekwon) May 16, 2022

More articles

Latest article

Crypto-gold exchange Vaultoro lowers fees, increases withdrawal limits

Vaultoro, the cryptocurrency-based gold & precious metals exchange, today announced new updates and platform enhancements for users. See below for...

CoinLoan integrates crypto analytics platform Elliptic to guard users from threats

CoinLoin, an EU-licensed crypto lending platform, announced it has integrated security protocols from Elliptic, a blockchain analytics provider. This integration...

SithSwap raises $2.65M to build next-gen AMM on StarkNet

SithSwap will leverage StarkNet’s advanced ZK-rollup technology for stableswaps with ultra-low slippage and near-zero gas...

Bitcoin payments make a lot of sense for SMEs but the risks still remain

The last six odd months has seen the cryptocurrency market witness an unparalleled amount of financial volatility, so much so that the total capitalization...

Bitcoin gives ‘encouraging signs’ — Watch these BTC price levels next

Bitcoin (BTC) headed toward the upper end of its trading range on June 24 as optimism crept back into traders’ forecasts.BTC/USD 1-hour candle chart...