What will be the fate of LUNA after Terra is resurrected?

According to Terraform Labs CEO Do Kwon, Terra’s new blockchain has launched after the proposal to “revive” the Terra Network was officially approved on May 25. Accordingly, the revival plan is not to propose a ‘fork’ of the existing chain, but to create a new chain called Terra 2.0.

It is known that the Terra 2.0 network is a new blockchain, without an algorithmic stablecoin. Meanwhile, the old blockchain is converted to Terra Classic, using the LUNA Classic token (LUNC) to distinguish it from the new chain called Terra 2.0 and the LUNA coin.

According to the revival plan, the old Terra network will still exist in parallel with Terra 2.0. After the hard fork, the stablecoin UST and the LUNC token will still exist and be tradable, however they will appear to be worthless as all capitalization and liquidity will be moved to the Terra 2.0 network.

In addition, a snapshot (data recording) on ​​the blockchain to split the LUNA 2.0 token has been taken. Therefore, users can now trade LUNC, UST and still be guaranteed to airdrop (distribute) LUNA 2.0 after running the new network.

The airdrop is expected to be done shortly after launch, either through centralized exchanges or Terra’s own website. Several central crypto exchanges including Binance, Huobi, Kraken, Bitfinex, Bitrue, Kucoin, and Bybit said they are allowing Terra supporters to receive allocated tokens from their platforms.

Specifically, the distribution of LUNA 2.0 to users will be divided into two groups, before and after the May 7 attack. Holders of LUNC before 7/5 will receive 35% of the total new LUNA tokens. However, small wallets under 10,000 VND will be unlocked 30% immediately after running the network, while large accounts have to wait at least a year. At the same time, holders of LUNC, UST after the attack are also divided about 25% of the total tokens.

According to TechCrunch, the launch of LUNA 2.0 will be a test of whether the community is as strong as people say. In fact, many people were wary of founder Do Kwon and Team Terra after the collapse of LUNA and UST.

References: The Block, TechCrunch…