LUNA 2.0 Launch Set For May 27 As Terra Revival Proposal Wins Community Vote: Everything You Need To Know
LUNA lost nearly all its value earlier this month, leading to an unprecedented plunge in overall crypto prices.
LUNA 2.0, the Terra revival plan devised by the cryptocurrency’s founder Do Kwon, is set to launch on May 27. Several crypto exchanges, including the likes of Huobi and Bitrue, took to Twitter to confirm their support for LUNA 2.0 on their respective platforms. While the Terra revival plan initially faced a lot of criticism, the crypto’s investor community has now approved Kwon’s proposal. Earlier this month, Terra (LUNA) cryptocurrency lost all its value due to the de-pegging of TerraUSD (UST) stablecoin. This led to a nightmarish domino effect on the overall crypto market, wiping out around $400 billion from other cryptos.
LUNA 2.0: Why did Terra crash?
The Terra ecosystem adopted UST as its stablecoin, which lead to a direct interlinking of LUNA and UST. UST is a stablecoin pegged 1:1 to the US dollar. Its de-pegging (losing dollar value) earlier this month led to LUNA losing almost all its value, trading at 97 percent below its all-time peak of $118, as seen in April.
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LUNA price stood at $0.0001559 at the time of writing, as per CoinMarketCap data.
LUNA 2.0: What did Do Kwon’s revival plan entail?
Following the crash, Terra’s Life Foundation Guard (LFG) deployed resources of around $1.5 billion to help stabilise LUNA. However, it failed to achieve its goal na hence, Revival Plan 2 was announced by Kown.
ALSO ON ABP LIVE: EXPLAINED | Will LUNA 2.0 Help Revive Terra?
As per the plan, the current Terra blockchain will be “forked” into a new one, without the UST stablecoin mechanism as before. While the older blockchain will be called Terra Classic (LUNC), the new blockchain will be called Terra (LUNA) to avoid confusion among new investors.
The revival plan also suggested that the total number of new LUNA tokens should be reset to 1 billion, in terms of active circulation. Proposing a target of 7 percent per annum, Kwon asked community members to incentivise Terra’s network security in line with the native token’s inflation.
LUNA 2.0: What did the investors say?
Initially, owing to losing nearly all their life savings, several LUNA investors were initially opposed to the Terra revival plan.
ALSO ON ABP LIVE: LUNA Investor Arrested For Knocking On Do Kwon's Door After Losing Millions
Last week, Kwon put up his revival plan for a community vote. It won the approval of 65.5 percent of LUNA investors, with over 200 million votes in favour. Out of the total, 20.98 percent abstained, and “no with veto” votes made up the rest.
Based on the vote, LUNA 2.0 will now be finally rolled out.
LUNA 2.0: Release date
LUNA 2.0 will be launched on May 27. Projects that were already hosted on the old Terra network will now transition to the new network without requiring any changes.
The new LUNA token will be airdropped for those who stake their existing LUNC tokens, residual USTs, and other essential tokens on the LUNC ecosystem.
As mentioned, the date was confirmed by several exchanges on Twitter.
#Huobi supports the launch of #LUNA 2.0 on May 27
— Huobi (@HuobiGlobal) May 25, 2022
Are you ready for "LUNA Rebirth"?💙 https://t.co/Vn1FFwlc4y
$LUNA is rising again!
— Bitrue (@BitrueOfficial) May 25, 2022
Bitrue will continue our historic support of @terra_money by being the first exchange to launch LUNA V2 trading.
LUNA V1 services will be suspended May 26 13:00 UTC, while V2 services will start ~May 27
Info, & potential airdrop - https://t.co/rbW3l98c6t pic.twitter.com/28OdmclwW7
LUNA 2.0: What are crypto leaders saying about the Terra revival plan?
While LUNA 2.0 has won the approval of Terra investors and crypto exchanges alike, not everyone appears to be on board.
Binance CEO Changpeng Zhao tweeted earlier this month to say, “This won’t work.”
Personal opinion. NFA.
— CZ 🔶 Binance (@cz_binance) May 14, 2022
This won't work.
- forking does not give the new fork any value. That's wishful thinking.
- one cannot void all transactions after an old snapshot, both on-chain and off-chain (exchanges).
Where is all the BTC that was supposed to be used as reserves? https://t.co/9pvLOTlCYf
Dogecoin co-creator Billy Markus, who goes by the pseudonym Shibetoshi Nakamoto on Twitter, posted that LUNA 2.0 will only prove how “dumb crypto gamblers are.”
luna 2.0 will show the world just how truly dumb crypto gamblers really are
— Shibetoshi Nakamoto (@BillyM2k) May 25, 2022
While the LUNA revival plan looks to drop UST and make the network more like a decentralised autonomous organisation (DAO), it remains to be seen if it actually helps recover the Terra ecosystem as a whole.
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