A week after $UST de-pegging, Terra-Luna community has finally approved a rescue plan 🌑
The newly formed Terra Builder Alliance published today the final version of Do Kwon’s “Luna go forward proposal”, which aims at salvaging the community and the ecosystem and consists in:
👉 forking Terra into a new chain without an algorithmic stablecoin. The old chain will be called Luna Classic ($LUNC), and the new one – Terra ($LUNA)
👉 $LUNA to be airdropped across $LUNC stakers, holders, $UST holders and old chain’s “essential app developers”
👉 Terraform Labs (the original company behind Terra) will have its wallet removed, so that Terra becomes a fully community-owned blockchain
👉 a “large part” of token distribution is to be allocated to developers
network security to be incentivized with token inflation
Over 17 protocols built on Terra have already expressed their support of the proposal, including Nexus, Falcon wallet and Terraswap. It is yet to be seen though if Terra without a stablecoin and with a standard token inflation will still be attractive to other developers, or if they will choose an already existing blockchain with a better track record.
Some industry players did not want to wait and see and moved in to scoop Terra’s projects by proposing tempting offers:
✔️ Polygon announced that the company is already working with a number of Terra’s project, helping them migrate to Polygon chain,
✔️ VeChain announced a $200k founding ready to be deployed to assist Terra’s projects with tech onboarding,
✔️ an aspiring layer-1 blockchain Fantom (#74 by market cap) promised to assist Terra developers with “a grant program, integration, marketing and connections”…
It has recently became known that at least three members of Terraform Labs’ legal team have resigned after the crash. Will developers working on Terra-based DApps follow the flight, or will they stay, hoping that the new Terra will rise from the ashes?
That does not sound like an easy decision 😅