Do Kwon, Founder of the beleaguered blockchain platform Terra, plans to revive the network with a new ‘hard fork’ that will help solve the design flaws in the ecosystem.The move comes after market volatility and inherent protocol design flaws wiped out a majority of Terra Luna’s market cap last week.A hard fork is a radical change to a network’s protocol that makes previously invalid blocks and transactions valid, or invalid.A hard fork requires all nodes or users to upgrade to the latest version of the protocol software, according to Investopedia.Also read: A look at what’s changed for Terra over the weekend On May 16, Kwon said his company Terraform Labs will put forth a new governance proposal that will fork the Terra Luna blockchain called Terra (token name LUNA).The new and updated chain will not be linked with the UST, a dollar-pegged stablecoin that collapsed last week.However, the old Terra blockchain will continue to exist with UST even as it switches to Terra Classic (LUNC) token.Also read: Ether, Cardano, Luna, and other top cryptos you can stake in 2022 “The Terra chain as it currently exists should be forked into a new chain without algorithmic stablecoins called ‘Terra’ (token Luna – $LUNA), and the old chain be called ‘Terra Classic’ (token Luna Classic – $LUNC).
Both chains will coexist,” Kwon said in a series of tweets on May 16.6/ The Terra chain as it currently exists should be forked into a new chain without algorithmic stablecoins called “Terra” (token Luna – $LUNA ), and the old chain be called “Terra Classic” (token Luna Classic – $LUNC ).Both chains will coexist.If all goes according to Kwon’s plan, the new blockchain will be live by May 27.
How will this happen? According to Kwon, new LUNA tokens will be airdropped to LUNC “stakers, holders, residual UST holders, and essential app developers” of the Terra Classic blockchain.Terraform Labs (TFL) will also remove its wallet from the whitelist for the airdrop to make Terra a fully community-owned ecosystem, similar to platforms like Ethereum in some ways, Business Insider reported.
Also read: Explained | Coin Burning: How is it done & why? The supply of LUNC will be capped at one billion, of which 25 percent will be reserved for the community pool.About 5 percent will go to essential developers, while 70 percent will be given to LUNC and UST holders at various snapshots of events in May.
The tokens will be subject to vesting conditions.Will this save Terra? According to the Business Insider report, it is still unclear if the proposal will restore the Luna ecosystem.Luna crypto’s price, which stood at $80 earlier this month, had fallen to nearly 5 cents last week.The ecosystems’ steward Luna Foundation Guard also said on May 16 that it had utilised an overwhelming portion of its cryptocurrency reserves in an attempt to defend UST’s peg during market sell-off, Coin Telegraph reported.
Others like Changpeng Zhao, CEO of Binance, is also not convinced with Kwon’s proposal although Zhao said he plans to support Terra’s community.Also read: A global crypto regulatory body may be coming soon; here’s what we know so far “Reducing supply should be done via burn, not fork at an old date, and abandon everyone who tried to rescue the coin.I don’t own any LUNA or UST either.Just commenting,” Zhao said in a tweet.
Not his first proposal On May 14, Kwon had proposed to abandon the UST stablecoin and redistribute Luna tokens amongst the ecosystem, a proposal that was contested by members of the community..