Three weeks after the de-pegging of its stablecoin, the Terra blockchain was reborn and produced its first block yesterday ?
As per the revival plan agreed on by the community, the new Terra does not have a stablecoin feature, and its currency $LUNA (the old $LUNA being renamed into $LUNC) will be used to pay for the transaction processing within the blockchain and governance votes, while validator nodes will still stake $LUNA to be able to add blocks and collect rewards.
In other words, the new Terra is basically another PoS-based blockchain serving as base for DApps development.
This is not as fancy as a blockchain with integrated stablecoin, but it is a business model that works, and unlike the old Terra (now also called Terra Classic), this time the “business”, i.e. the blockchain itself, will be fully community-owned. The new Terra will progressively distribute 1 billion $LUNA coins among the holders of the old $UST and $LUNC, smaller investors first:
? 35% to the “pre-attack” $LUNC holders: wallets with <10k $LUNC;
? 10% to the “pre-attack” aUST (UST locked in Anchor protocol) holders: wallets with <500k (99.7% of all holders, but less than 27% of all aUST);
? 10% to the “post-attack” $LUNC holders
? 15% to the “post-attack” $UST holders
? 30% to the community pool controlled by staked governance
Most eligible wallets will get 30% of the airdrop unlocked now, and the rest vested over 2 years with 6 months cliff (i.e. not disposable until 2.5 years). In case of $LUNC holders, wallets with >10k $LUNC will have to wait one year, and then 2-4 years cliff.
Such distribution will allow investors in Terra 1.0 regain some of their losses, but only at the condition that Terra 2.0 works: the DApps are being built, people are using them, the confidence is regained…
Over 20 old Terra protocols have already expressed their readiness to adapt to Terra 2.0, and six crypto exchanges have already shown their support by listing the new $LUNA.
? The public, however, appears not ready to approve of Terra 2.0 just yet: since its listing yesterday, the price of $LUNA has lost 68%, plunging from $18.87 to around $6 at the time of writing. The Twitter is divided too: some analysts call on to admit the “failed experiment” and forget about Terra, others still have hope in its (quite important) community of developers and their creative force.