Terra’s Revival Plan

Terra’s Revival Plan

In this gigantic Terra LUNA x UST fiasco, which will go down in crypto history books, many individuals were caught off guard and lost money. However, Do Kwon, the project’s leader, has emerged with news that might rekindle investor optimism.

Do Kwon has stated that he has a recovery plan, including numerous steps to rescue the Terra (LUNA) Blockchain ecosystem. The plan is broken down into several sections.

A New Blockchain

A pre-collapse ‘hard fork’ appears to be the best and most straightforward option. The new chain, according to Kwon, would not be based on an algorithmic stablecoin. In other words, UST will be phased out. For people who don’t know what a hard fork is, A hard fork is when a blockchain splits from a given block, resulting in a new, parallel chain. Up to the forked block, all information in the ledger is migrated to the new chain.

Terra Classic (LUNC) will be the name of the old Blockchain, whereas Terra (LUNA) will be the name of the new Blockchain sans the UST structure.

Distribution of Coins

All people that have a stake i.e., locked up or pledged their LUNA classic tokens, residual USTs, and other critical tokens of the Terra Classic ecosystem, will receive the new token LUNA for free.

This new LUNA token will be distributed through airdrop to:

  • Stakeholders in the LUNA Classic
  • Holders of LUNA Classic
  • Holders of Residual UST
  • Terra Classic app developers

Terra FormLab’s wallet address will be whitelisted for this LUNA airdrop, therefore it will only be available to the community. Additionally, the airdrop will not include any tokens for the firm that initially oversaw the Terra ecosystem.

Distribution Schedule

A total of 1 billion (1,000,000,00) fresh LUNA tokens will be deployed. The new Terra chain will be powered by these LUNA, which will be distributed according to a set of rules.

  • Community pool: 25%

Controlled by staked governance

10% earmarked for developers

  • Pre-attack LUNA holders: 35%

All bonded / unbonded Luna, minus TFL at “Pre-attack” snapshot; staking derivatives included.

For wallets with < 1M Luna: 1-year cliff, 2 years vesting thereafter

For wallets with > 1M Luna: 1-year cliff, 4 years vesting thereafter

  • Pre-attack UST holders: 10%

500K whale cap — covers up to 99.7% of all holders but only 26.72% of UST

15% unlocked at genesis; 85% vested over 2 years thereafter with a 6-month cliff

  • Post-attack LUNA holders: 10%

Staking derivatives included

15% unlocked at genesis; 85% vested over 2 years thereafter with a 6-month cliff

  • Post-attack UST holders: 20%

15% unlocked at genesis; 85% vested over 2 years thereafter with a 6-month cliff

As you can see, the strategy attempts to help developers migrate to the new chain by providing them with additional LUNA tokens and paying the community for their losses.

Terra will now operate as a community-owned crypto Blockchain, similar to a decentralized autonomous organization (DAO). However, because most of these steps will take time to implement, there are a few critical hazards to be aware of.

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