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Do Kwon now fully supports the Luna fork to restore the Terra ecosystem, but will that happen?
The Luna fork looks like a path to Terra’s recovery from the cryptocurrency crash. The CEO of TerraForm Labs made a proposal for a hard fork Terra Luna.
Now that Luna’s circulating reserves are in the trillions, restarting the chain before the attack is considered one way to revitalize Terra’s broader ecosystem.
Here’s everything you need to know about the Terra Luna fork.
Terra Luna Hard Fork
TerraForm Labs CEO Do Kwon has proposed a Terra Luna hard fork to restore the ecosystem.
In his second (but actually third) terra ecosystem revival plan, Kwon prioritized the Terra ecosystem over UST.
“The Terra ecosystem and its community deserve to be preserved,” he said in his proposal.
His already completed offering will branch Terra into a new chain without the UST or any algorithmic stablecoin elements. It will be called Terra, and the original Terra Classic network (along with Luna Classic or LUNC).
Those who participate in the ecosystem will receive their allocated Luna 1 billion. The number will be divided as follows:
- 35% for Luna holders before attack.
- 10% to Luna holders after an attack.
- 10% to UST holders before attack.
- 20% to UST holders after an attack.
- 25% in the community pool controlled by staking.
- 10% for developers.
The pre-attack image will be taken from the Terra 7544910 block dated May 7, 2022. The picture after the attack will be taken in block 7790000 on May 27.
Notably, TerraForm Labs is missing from this distribution. Kwon said it would be removed from the giveaway to “make Terra a network wholly owned by the community.”
Once launched, Luna will have an inflation rate of 7% distributed among the stakers.
This amended proposal was approved by the Terra Builder Alliance, which was the first to put forward the idea of branching with its Luna Go Forward proposal.
The original Do Kwon restoration plan focused on re-binding TerraUSD (UST) before the hard fork plan was created.
“Terra is more than UST,” Kwon commented to underscore his commitment to a broader ecosystem.
A hard fork is the division of a blockchain into two different parallel networks. One of the most notable hard forks is the fork of Ethereum and Ethereum Classic after the DAO attack. While ethereum’s hard fork did “restore” these funds, the proposed rollback to the scale some at Terra Luna offer will be a little different.
Of course, this is only one proposal, and many wonder if holders will simply dump their tokens once the new network is launched. The Binance CZ CEO also criticized the idea of the fork, explaining that it does not create value for the Terra ecosystem. Others seem to be more supportive of burning Lun to reduce circulating supplies.
For a fork to occur, you must first go through the current governance vote. A preliminary vote on the proposal showed that 92% of those who voted were against the fork.
Chronology of terra Luna hard fork
The first stage of the hard fork has already come, the choice of Terra Lun for the new network is now at the voting stage.
If it passes, the network plan will move on to the next stage. Release and launch instructions for Terra Core will be published on May 21, and major developers must register by May 25.
Then, on May 27, a Launch snapshot will be made for UST and Luna holders. On the same day, the network update will start.
As stated in the sentence:
“Snapshots may change depending on development readiness.”
#Fork #Terra #Luna