Terra Revival Plan Moves Ahead After Vote, LUNA, UST skyrocket.
The price of the Terra network’s native LUNA token and the failed stablecoin terraUSD (UST) rose in the market on Wednesday after the network’s rebirth plan was approved by a vote with 65% in favor. This Friday, May 27th, a new Terra blockchain is expected to go live. LUNA had gained about 32% in the previous 24 hours to a price of USD 0.000199 as of 14:45 UTC on Wednesday. At the same time, UST, Terra’s botched algorithmic stablecoin, was up 61% to USD 0.1067 in the same time period. “Terra 2.0 is coming. With overwhelming support, the Terra ecosystem has voted to pass Proposal 1623, calling for the genesis of a new blockchain and the preservation of our community,” Terra’s Twitter account said after the vote had passed. Terra co-founder Do Kwon devised a strategy to resurrect the troubled blockchain, with the major component being the establishment of a new one with a fresh governance token that will be handed to users harmed by Terra and its terraUSD (UST) stablecoin’s demise. Terra’s Twitter account also released the following split for the distribution of the new LUNA coin today: According to the timeline on Do Kwon’s Terra resuscitation plan, the new Terra network is expected to begin on Friday this week, after receiving approval from a majority of network validators. The old chain will be known as Terra Classic from then on, with its token Luna Classic (LUNC), and the new chain will be known simply as Terra, with its governance token LUNA. According to the stated plan, the new Terra chain will be built without an algorithmic stablecoin. Terra also stated in today’s update that it is working closely with exchanges such as Binance, Bybit, and “many more” to ensure that anyone holding tokens on exchanges will be able to obtain the upcoming airdrop. Meanwhile, Binance published its own statement today, stating that it is “working closely with the Terra team on the recovery process, striving to provide the best possible care to impacted Binance consumers.” Huobi, a prominent exchange, issued a similar statement, stating that it “supports the launch of LUNA 2.0 on May 27.” Notably, Lido(LDO), a liquid staking provider that is particularly popular among Ethereum (ETH) users, will not support the latest Terra version. The Lido team announced on Twitter on Wednesday, “Following a discussion on the launch of Lido on Terra v2, the Lido DAO has voted to NOT support the Terra reboot,” Almost 95 percent of LDO tokens voted against the revival plan, according to Lido’s voting page. Several members of the crypto community expressed doubt in response to the revelation that Terra is pushing forward with a new blockchain. While one user suggested that exchanges “refuse to list” a new coin, others dismissed the idea as “wishful thinking” that more money would be put in the Terra network.