The CEO and founder of Terraform Labs have introduced “Luna Classic” Hard Fork to stabilize its ecosystem.
- The old terra blockchain will be known as “Terra Classic.”
- Terra (LUNA) will become Terra (LUNC) once the Hard Form proceeds ahead
- “LUNA” holders and developers will get billions of new Terra tokens named “LUNC” once the Hard Fork approved
- Hard Fork is a contemporary revival plan to split the current Terra ecosystem.
Terra (LUNA) announced a new plan on May 17 after a combination of heavy market volatility and inherent flaws in the Terra blockchain led to Terra’s market capitalization loss.
Can this plan save the Terra community and develop trust in Terra (LUNA) again?
The co-founder said that Terra is more than just TerraUSD (UST) which crashed inadequately last week. According to Terra’s architect, the network includes more than UST, which he does not intend to bring back.
A Terraform Labs representative claimed that on May 18, a new rule proposal would be presented for the Terra Luna blockchain called Terra (token name: LUNA).
Yet, TerraUSD (UST) will not be hooked on the new upcoming chain. Therefore, the old Terra Blockchain will continue with the present TerraUSD (UST) and be anointed by Terra Classic (LUNC) as Kwon’s new revival plan. If the plan arrives, it will go live on May 27.
The transpire is that the new Terra (LUNA) token will ship to LUNC holders, UST holders, and the Terra Classic Blockchain developer team via airdrop. Further, it is expected that Terraform Labs’ wallet address terra 1dp0taj85ruc299rkdvzp4z5pfg6z6swaed74e6 will be removed from the safelist for the airdrop, thus making Terra a fully community-owned chain.
In this plan, 1 billion LUNC will be restrained and preserved 25% by the pool community, 5% by the developer and team, and 70% sent to the LUNC and UST holders at numerous snapshots.
In conclusion, Terra (LUNA) is minted and destroyed under a supply and demand model to redeem TerraUSD (UST). The model is effective when there is a demand and the price increases. Yet, a massive liquidation of a DeFi protocol that offered huge returns on stablecoin staking eventually brought the system to an end.
LUNA and UST Price Update
Last week, LUNA traded at more than $70, but now the stock is worth $0.00019. UST, the world’s third-largest stable coin backed by the dollar, was valued at $19 billion in 2017 but has fallen to $0.11. See the latest price of LUNA and UST on the DigitalCoinPrice forecast and compare it via DigitalCoinPrice’s Cryptocurrency Compare.