Nine days ago, Terraform Labs founder Do Kwon shared a plan to revive the Terra Ecosystem after its stablecoin UST and cryptocurrency LUNA nosedived earlier this month, bringing down the crypto markets with them.
Today, Terra’s plan has passed and been approved by the community.
“Terra 2.0 is coming,” Terra’s official Twitter account tweeted on Wednesday. “With overwhelming support, the Terra ecosystem has voted to pass Proposal 1623, calling for the genesis of a new blockchain and the preservation of our community.”
The proposal will effectively create a new layer-1 Terra blockchain without its algorithmic stablecoin. The old blockchain will be called Terra Classic (LUNC) and the new blockchain will be called Terra (LUNA), the company tweeted. The Luna token is new and should not be confused with the old one under the same exact name (confusing, I know.)
The proposal had 65%, or about 200 million votes, in favor of the plan, while about 21%, or 54 million, abstained, and about 13%, or 41 million, voted no, according to data from Terra Station. The votes are cast based on LUNA token ownership, with one vote per token, not per user.
Given that it has passed its threshold, the relaunch plan will be rolled out on May 27.
Per the terms of the proposal, Terra will airdrop tokens to community members who never sold their old LUNA tokens or UST stablecoins amid the ecosystem’s downfall.
According to the plan, the tokens will be distributed as follows:
- 30% to its community pool
- 35% to pre-attack LUNA holders
- 10% to pre-attack UST holders
- 10% to post-attack LUNA holders
- 15% to post-attack UST holders
The wallets tied to Terraform Labs and Luna Foundation Guard will not be a part of the airdrop whitelist, Terra wrote.
“[This} will make Terra a fully community-owned chain,” Terra said. “We believe this is an important step to empowering our ecosystem.”
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