The Terra team has commenced the process of deciding the future of its ecosystem and compensating holders for their losses.
1/ Terra governance prop #1623 to rename the existing network Terra Classic, LUNA Classic ($LUNC), and rebirth a new Terra blockchain & LUNA ($LUNA) is now live.
Vote here: https://t.co/ZlGxNCUTMa https://t.co/plj0guJwao
— Do Kwon ? (@stablekwon) May 18, 2022
As part of efforts to make Terra investors whole after suffering huge losses last week, TerraForm Labs has announced that it has initiated a new proposal that will determine whether a new chain will be forked.
Details of the Proposal
The Terra proposal dubbed #1623 was launched today and will be the major determinant of the next step the Terra team will take going forward.
The proposal seeks to rename the existing network to Terra Classic and previous tokens will be renamed LUNA Classic ($LUNC), and it will also fork a new Terra blockchain and token dubbed LUNA ($LUNA).
Meanwhile, the team does not seem likely to continue with TerraUSD (UST) at the moment, as the proposal did not include the popular stablecoin that recently lost its peg to the United States Dollar.
It is worth noting that the proposal is backed by a number of validators and builders, who have indicated support to continue working on the network once a new chain is born.
3/ This proposal has broad support of Terra builders – @scv_security @ProtocolTalis @prism_protocol @NexusProtocol @knowhere_art @tns_money @leap__terra @staderlabs @setten_io @realTerranOne @coinhall_org @randomearth_io @PhoenixFinan@ape_board @flipsidecrypto
— Do Kwon ? (@stablekwon) May 18, 2022
According to the team, if the proposal passes and reaches the required number of votes, a final snapshot of investors’ LUNC holdings will be taken on May 27, 2022, at block 7790000 and a new Terra network will be born.
Results of the Proposal
After the new Terra network is launched LUNA will be airdropped to holders of the LUNC tokens.
Over 67 million votes have been registered with the vast majority of users supporting the proposal at press time. So far, 88.95% of participants have voted in favor of the proposal, 0.03% declined the offer, while 11.01% voted “No with Veto”.
The voting exercise will run until the next seven days, after which a decision will be made that will determine the future of the Terra ecosystem.
Meanwhile, many cryptocurrency enthusiasts, including Binance CEO and founder Changpeng “CZ” Zhao, have taken to various social media platforms to condemn the idea of forking the existing Terra chain to birth a new network.
However, the cryptocurrency community is united on making investors whole again, and the steps to make this a reality does not really matter.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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