Cryptocurrency exchanges simultaneously announced support for Terra 2.0

Plan to “revive” Terra is approved

May 25, proposed “reviving” Terra Network was officially passed with 65.5% of the votes in favor.

Plan to revive Terra passed with 65.5% votes in favor on Terra Station Screen capture

Thus, if according to the complete plan due to Posted by KwonTerra 2.0 will be “on-chain” today (May 28).

How will Terra 2.0 be different from the old network?

According to the revival plan, the old Terra network will still exist in parallel with the name Terra Classic, in which the LUNA coin is renamed LUNC (Luna Classic). After performing the hard fork, the amount stablecoins UST and LUNC tokens will still exist and be tradable, however they will appear to be worthless when all capitalization and liquidity will be moved to the Terra 2.0 network.

Meanwhile, blockchain There will be no more algorithmic stablecoins. In other words, Terra 2.0 will only have LUNA as the only token and all applications and products in it will use LUNA instead of LUNC and UST.

Fate of LUNC and UST

As mentioned above, LUNC and UST still exist on the Terra Classic blockchain and can be used for transactions. At the same time, the transactions of LUNC and UST at the moment do not affect the benefits of the new token because the snapshot process (taking data at a fixed time) has been completed.

However, major exchanges like BinanceKucoin, ByBit, Huobi or FTX have suspended trading of LUNC and UST pairs since the night of May 26, with the reason given to serve for snapshot and airdrop of new tokens, and at the same time protect investors from drastic changes in the transition.

Along with that, the exchanges committed to reopen trading with LUNC and UST later, in which the Binance exchange “closed” the time on May 30.

Binance Exchange announces the time to suspend/reopen transactions with LUNC and UST Screen capture

New token distribution mechanism

The distribution token New customers will be divided into two groups, taking the time to distinguish before and after the attack on May 7. Accordingly, LUNC holders before the attack will receive a 35% share of the total new tokens, while holders of LUNC, UST will then be divided about 25% of the total tokens.

In addition, “small wallets” (under 10,000 tokens) will have more priority when unlocked 30% immediately after Terra 2.0 “on chain”, while “big wallets” have to wait at least a year. This is considered a move to support small and medium investors to overcome difficulties after the recent historic crisis.

Exchanges are gradually accepting Terra 2.0

As observed right from the time the proposal was approved, a series of projects and cryptocurrency exchanges in turn posted notices to support Terraform Labs in rebuilding the project.