Terra is launching a new blockchain project
Do Kwon’s proposal to construct a new Terra blockchain, this time without an algorithmic stablecoin, was approved by the Terra community in a vote.
No algorithmic stablecoins will be created on the new Terra blockchain after a vote by the Terra community.
Do Kwon’s effort to resurrect the Terra ecology seems to be taking hold. The Terraform Labs CEO and co-plan founder’s to build a new Terra blockchain was accepted by the board of directors on Wednesday. With 65.5 percent in favour and just 13.2 percent voting “no with veto,” the plan came up short of the veto threshold by 20.2 percent, as 65.5 percent of the total votes were cast in favour of it.
Terra’s $40 billion collapses earlier this month prompted the company to take this action. New LUNA tokens and a new blockchain are proposed as part of a resuscitation plan presented by Kwon, and endorsed by Terraform Labs and the Terra Builder Alliance. The new Terra network will not be tied to an algorithmic stablecoin, unlike the earlier Terra network. In accordance with the plan, Terra will be the new chain’s name, while Terra Classic will be the new name for the chain that collapsed to 0.
The fresh LUNA tokens will be airdropped to Terra investors who owned LUNA and UST before and after Terra’s fall, according to a defined distribution. According to the distribution plan, staked governance will control 30% of the new LUNA supply, while ecosystem developers will get 10%. The remaining 30% will be distributed to holders of LUNA, UST, and aUST tokens by airdropping. AUST symbolises UST tokens invested in Terraform Labs’ Anchor Protocol, a lending solution offering up to 20% annual percentage payouts to investors. During Terra’s collapse, the Anchor Protocol went down. For now, Terraform Labs will be the recipient of any additional LUNA tokens sent via the airdrop.
In the meanwhile, Kwon is apparently facing a fraud lawsuit from dissatisfied investors, who have been focused on reviving the ecosystem and quelling at least part of the community’s anger during the previous two weeks. As a result of his endorsement of the Anchor Protocol, authorities in South Korea are also said to be investigating him.