key takeaways
- Terra’s new blockchain has been successfully launched.
- Blockchain went live with the LUNA airdrop for previous Terra investors.
- The revival effort comes after the surprise collapse of Terra earlier this month.
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Blockchain went live this morning with an airdrop of the new LUNA token.
terra effort revival
The new Terra Blockchain is live.
Terraform Labs took to twitter Today to confirm that the new network has started production of blocks. It launched at 06:00 UTC with a token airdrop for previous LUNA and UST holders.
The brand new Terra Blockchain’s 1/Block 1 (with a chain_id of “Phoenix-1”) has been officially created on May 28, 2022 at 06:00 UTC!
congratulations #lunatic community on this quick feat of cooperation
— powered by Terra Luna (@terra_money) 28 May 2022
The new blockchain launch is an attempt to salvage what remains of the Terra community in the wake of the blockchain’s surprising collapse earlier this month. Terra’s Algorithmic Stablecoin UST Launched depegged The dollar, on May 8, is sending its affiliate token LUNA into a death spiral. Within days, the UST was trading only a few cents on the dollar, and the Luna fell to almost zero. As fears of stablecoins mounted and other major assets plummeted, the explosion wiped out nearly $40 billion in value and wreaked havoc across the industry.
The outspoken co-founder and CEO of TerraForm Labs, Do Kwon, proposed to fork Terra on May 16, claiming that “The Terra ecosystem and its community deserve to be protected.” He devised a plan to revive the network without involving an algorithmic stablecoin, suggesting the distribution of a new token that would be aimed at Terra investors as a whole. The plan initially faced widespread hesitation from the community; However, its prospects improved dramatically after more than a dozen major validators. indicated their support next day.
To coincide with the blockchain launch, an airdrop for a new LUNA token went live this morning. According to the distribution plan, 70% of the new token allocation will be given to previous LUNA, UST and aUST holders (the UST tokens represented by aUST are staked in Anchor Protocol, Terra’s flagship DeFi protocol that offers investors a 20% return on their stablecoins). provide). Terraform Labs did not receive any tokens from the drop. Eligible addresses could claim the airdrop through the Terra website, and it was also supported on several major exchanges. According to Bybit, as of press time, LUNA is trading around $16. With the new Terra blockchain and LUNA token now live, the original LUNA and UST have been renamed to LUNA Classic and UST Classic, while the original network is now called Terra Classic.
The new blockchain launch is an audacious move for Kwon, who is now facing growing legal problems. Many investors are reportedly organizing file fee against Kwon for fraud, and he also faces potential criminal risk: according to local reports, South Korean officials are investigating Kwon, possibly for running a Ponzi scheme, and he was also reportedly handed a $78 million fine by South Korea’s National Tax Service for tax evasion. Kwon has been unusually cagey in his online communications since the fall of Terra, but he has claimed that Terraform Labs in South Korea has no tax liabilities.
Disclosure: At the time of writing, the author of this article owns LUNA, LUNC, ETH and many other cryptocurrencies.
