LUNA 2.0 Launches Successfully as Previous Chain Renamed to ‘Terra Classic’

May 31, 2022, 10:00 AM AEST - 1 month ago

Following the implosion of LUNA and UST, this past weekend saw the launch of Terra 2.0, albeit without an algorithmic stablecoin which arguably led to Terra Classic’s downfall.

Terra 2.0 Goes Live, Tokens Airdropped

Terra’s new blockchain launched on mainnet with the express intention of reviving the Terra ecosystem. This follows the dramatic collapse of its algorithmic stablecoin UST, which depegged from the US dollar a few weeks ago.

With the new chain operational, the original network has since been renamed to “Terra Classic”, whose tokens are now known as LUNA Classic (LUNC). Interestingly, the new blockchain has elected to steer clear of an algorithmic stablecoin, instead electing to stick with LUNA tokens only.

LUNA apparently has a fixed supply of 1 billion, relative to LUNC’s supply which is over 6.5 trillion. As per an official announcement, holders of LUNC will receive 70 percent of the total supply, with the amount depending on whether the tokens were held before or after UST’s depeg.

Holders can expect to claim their LUNA from a participating centralised exchange or Terra’s own website. Critically, not all of the airdropped tokens will be claimable at launch, as only 30 percent of the initial supply may initially be claimed. The remaining 70 percent will be staked directly with validators to “ensure network security” for a period of up to two years.

Aside from the 70 percent allocation to LUNA Classic holders, the remaining fixed supply will be allocated to Terra’s treasury.

LUNA Off to a Difficult Start

Shortly after going live, LUNA dropped precipitously by some 80 percent. While one could infer that this points to a lack of faith in the new blockchain, others had a more pragmatic outlook:

Still, Terra’s outspoken founder Do Kwon remains a controversial figure and, on announcing the new blockchain going live, has received a swarm of responses questioning his character:

Notwithstanding a successful launch of Terra 2.0, a hefty fine for tax evasion and a class-action lawsuit loom large for Terraform Labs. While the immediate future is uncertain, this saga is certainly far from over.

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