Do Kwon’s Terra Blockchain rebirth proposal 1623 has been approved by the validators with 65.5%. Do Kwon and Terra team is working vigorously to launch the Terra 2.0 on Friday on mainnet. Post the launch of new Terra blockchain, the LUNA 2.0 tokens shall be made available for trading. According to Terraform Labs, the new blockchain will be referred to as Terra while the older version will be renamed as ‘Terra Classic’.
Yesterday the scheduled voting came to an end after a days of discussion and arguments between community members, validators, and the founder itself. Finally, it is some relax for Do Kwon that the voting has ended and the end result is in his favor. The proposal was made to create a new Terra chain without any algorithmic stablecoin on the Terra Station platform. While the total votes for a YES was 65.5% leading to the approval of rebirth plan, only 13.2% people voted against forking and voted ‘no with veto’. Whereas 20% restrained themselves from voting.
The rebirth plan suggested by the founder Do Kwon came just after the TerraUSD (UST) and LUNA crashed in the market and couldn’t sustain. It caused depegging of the US dollars in the market which further caused the surplus supply of LUNA token. As a result the blockchain was suspended and both the algorithmic stablecoins were collapsed.
Along with this many centralized crypto exchange such as Binance stopped the trading of UST and LUNA from there platform to avoid any further market crisis. The collapsing of UST and LUNA wiped $43 billion worth of money from the market. Also, other stablecoins were affected due to this disaster.
Another interesting revelation was found that the new Terra blockchain will not going to have UST token. It will only have one token and that it LUNA 2.0. The LUNA 2.0 will be airdropped to the existing stakeholders of the Terra ecosystem. However, a large portion of LUNA 2.0 will be held in vesting period.
Also read: LUNA plunges to 80% downfall- Do Kwon initiates the Terra recovery plan