There have been a variety of reactions to the Terra ecosystem’s recent problems.
Some affected individuals have filed a lawsuit against Do Kwon, the founder of Terra, over the losses incurred due to the price crash of LUNA and the algorithmic stablecoin, UST.
Many team members, particularly in the internal legal department, have distanced themselves from Terraform Labs and Do Kwon.
Do Kwon’s response to this debacle was to organize a voting session to determine whether the Terra chain’s architecture should be modified through a fork.
Do Kwon is requesting the community to vote on whether a fork should be conducted, which would result in the creation of a new Terra chain without the presence of an algorithmic stablecoin.
If this happens, the old chain will be known as Terra Classic, and its native token will be known as LUNA Classic – LUNC.
As for the new blockchain, it will retain the name Terra, while the token will be called LUNA.
Another aspect of the proposal is the airdropping of LUNA to individuals who already own LUNA Classic, pitting them against current UST holders and the Terra Classic development team.
Thirdly, the payout for staking is set at 7% APY to encourage more people to stake.
Fourthly, if the proposal is agreed upon by the community, “TFL’s wallet (terra1dp0taj85ruc299rkdvzp4z5pfg6z6swaed74e6) will be removed from the whitelist for the airdrop, making Terra a 100% community-owned chain.”
Finally, the token distribution scheme will be modified to provide support to those that are building on Terra while also encouraging developers to become involved in the ecosystem.
The proposal elicited conflicting views, with one school of thought optimistic that it would restore the Terra ecosystem to its former grandeur.
Another group of people was perplexed by the plan.
“What happens to tokens from dApps like Astroport, Mars, Mirror, and so on?” asked Majinraptor, a community member.
Do we sell and hold UST in preparation for this fork? Or will these tokens be ported over to the new fork?
I assume they’ll be ported over, but a confirmation would be great. “
Some community members like Shane believe that the fork is a waste of time. According to him,
“No one wants a fork. Just burn the current LUNA and fix the current algorithm to get the UST peg. “
Do Kwon, the founder of Terra, stated on his official Twitter page,
“Terra governance prop # 1623 to rename the existing network Terra Classic, LUNA Classic ($LUNC), and rebirth a new Terra blockchain & LUNA ($LUNA) is now live.
Vote here: https://station.terra.money/proposal/1623. “
He also stated in the tweet that the final snapshot will occur in “the Terra Classic network at block 7790000 (2022.05.27 03:59:51+08:00), and a new network will be born,” if the proposal is successful.
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