Lido Finance Will Not Launch on Terra 2.0 as Community Votes Against the Move

The Lido Finance community does not want the project to relaunch on Terra 2.0.

As Terra edges closer to its much-anticipated fork that will give birth to a new chain, the Lido Finance community has voted against the decentralized application’s relaunch on the new Terra network. 

This comes following the closure of its proposal dubbed “Should Lido support Terra reboot?” that was launched by the Lido Finance team earlier this week. 

The proposal, which ended today, saw the majority of members of the Lido community vote against the protocol’s relaunch on the upcoming Terra 2.0. 

According to the Lido Finance recently-concluded proposal, 94.57% of participants of the proposal voted against the relaunch of the protocol on Terra 2.0, while 5.43% declared their support for the dApp to continue on the new Terra network. 

Lido Finance allows users to stake their assets without locking the assets as required by other staking apps. The protocol lowers the barrier of entry into crypto staking by simplifying the process.  

Terra Loses Investors’ Confidence After UST Collapse

The obvious reason why the Lido community is not motivated to see the protocol relaunched on the new Terra network could be because of the massive crash of Terra ecosystem tokens, which many believe were solid and without flaws. 

However, many are still in shock that TerraUSD (UST) and LUNA could crash the way they did despite the numerous venture capitalists (VCs) backing the project. 

It is common knowledge that Terra has lost investors’ confidence in the project following its ecosystem tokens crash. However, the team behind Terra is not giving up on the project as they have launched significant efforts to make investors whole again. 

Terra 2.0 Proposal Passed

Terra is close to launching a new chain after LUNA and UST plummeted. The firm’s proposal to launch a new chain without the algorithmic stablecoin was concluded earlier today, and officially passed with 65.5% of participants in favor of the move to create a new chain dubbed Terra 2.0. 

Out of the more than 305.9 million votes recorded, 200.4 million representing 65.5% of the total votes were in support of the Terra 2.0 launch. 

With the proposal passed, a snapshot of the balance of all LUNA holders will be taken as early as Thursday, May 26, 2022 at 16:20 UTC. 

Once the snapshot is taken, the new chain will go live on Friday May 27, 2022, with the old tokens renamed to LUNA Classic ($LUNC), while the newly created tokens that will be airdropped to users will be referred to as $LUNA going forward. 

Although Lido Finance will not be continuing with Terra 2.0, five validators have already declared their intention to continue working on the new Terra network when it goes live.