Terra 2.0 to Relaunch on New Blockchain Without Algorithmic Stablecoin

May 27, 2022, 10:15 AM AEST - 4 weeks ago

On the eve of Terraform Labs’ May 27 second coming, to be known as Terra 2.0, trading platforms were said by Terra to be showing “overwhelming” support for the revival of the collapsed network by listing its new token as it completes its crawl from the wreckage.

No Fork for New Chain

The new chain will not be a fork, as previously proposed by Terraform Labs CEO Do Kwon. It will be created instead from the genesis block and shares no history with Terra Classic, as the old chain has been dubbed. The new Terra token will be named LU, replacing the old token referred to as Luna Classic (LUNC):

Among the exchanges intending to cooperate with Terraform Labs in its new incarnation are HitBTC and Binance.

Earlier this month, a “heartbroken” Kwon flagged his intention to create a new Terra chain without Terra’s algorithmic stablecoin, TerraUSD (UST), suggesting LUNA airdrops across LUNC stakers and holders, UST holders and Terra Classic app developers.

Despite as many as 91 percent of network validators initially voting in favour of the Terra “rebirth” plan, Luna investors last week applied for seizure of Kwon’s property in a class-action lawsuit filed in the hope of offsetting their losses.

Second Vote Records Reduced Approval

Terra’s revival comes after Terraform Labs halted the Terra chain on May 12 following a massive network crash, with the Luna token plummeting as low as 99.7 percent and UST losing its peg to the US dollar. The revival plan is moving forward after a second vote by validators on May 25, this time with a 65 percent approval rating.

The supply of tokens on the new blockchain will be just over 116 million, according to developers. Investors who held over 10,000 LUNA tokens before UST’s implosion will receive the new tokens in instalments to prevent immediate sell-offs.

At the time of writing, LUNA was reportedly up over 6.2 percent in the previous 24 hours.

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