The world of cryptocurrencies recently hosted an event that shocked and frightened all investors. One of the most popular blockchain projects, the UST, which is on the Terra network and is indexed to 1 dollar, collapsed, the own cryptocurrency of the blockchain, Terra (LUNA), which is used to keep this stable coin stable, almost completely lost its value in one day.
Investors, who invested hundreds of thousands of dollars in LUNA, lost all their money as a result of this incident, and the incident also damaged the trust in stablecoin and blockchain projects. While the Luna Foundation team is looking for a solution that will both save the investors and fix the project, the founder of the project, Do Kwon, shared the second recovery plan today.
Shared solution proposal for the recovery of the Terra Luna network
The proposal by Do Kwon offered insight into how the blockchain could be recovered. But there is a gap for former UST holders. The solution proposal for the project, which is followed closely by crypto money investors, consists of the following steps in summary:
Forking the Luna Terra blockchain and making the network name Terra Classic and the token to be used in the network Luna Classic (LUNC): An alternative and new blockchain network will be built for the existing blockchain network. The current network will be renamed Terra Classic and its token will be renamed Luna Classic.
Luna Terra’s new blockchain network will keep the names on the existing network. In other words, the new blockchain Terra will carry the token name LUNA.
And to whom will the new tokens created with the new blockchain be distributed?
According to the proposal submitted by Do Kwon, the new tokens will be airdropped to investors who fall into the following classes:
- Luna Classic holders i.e. currently LUNA Owners
- Has Luna Classic in their fixed wallet (Likewise currently has LUNA)
- Developers on Terra network
- Not before the attack that crashed UST (26 May 2022 CET 22.59), then those holding UST. That is, those who bought UST after the collapse of UST.
With the last clause, Do Kwon simply states that no new tokens will be distributed to investors who previously held UST and suffered unlimited losses after the stablecoin crashed. This article started a great debate among those who followed the event closely.
Existing clauses also showed that after the attack, i.e. after May 26, those who purchase or continue to hold LUNA or UST will have the new token with the establishment of the new blockchain.
So who and how many LUNA tokens will be given?
According to the proposal, there will be one billion new LUNA tokens in the new network. 25% of these tokens
- will be allocated to the community pool,
- 1% will be reserved for emergencies to be used for non-lockdown core developers,
- 4% According to the countdown to be started after the new token release, it will be distributed over 4 years after a 1-year lockdown.
- 35% to pre-attack LUNA holders
- for wallets holding less than 1 million LUNAs, distributed over 2 years after 1 year of lock,
- for wallets holding more than 1 million LUNA After 1 year of lock, it will be airdropped by being distributed over 4 years.
- 10% of LUNA holders after attack or new network start
- LUNA holders at start of new network will be given 10% of qualifying tokens, the rest will be distributed within 2 years .
- 25% will be distributed to UST holders after the attack or at the start of the new network.
- Initially 10% will be given, the rest will be distributed within 2 years.
The new proposal will offer some hope for pre-attack LUNA holders and developers on the network, while basically literally trashing the money of previous UST holders. Of course, all this will happen if the proposal is accepted by the community. If the proposal is accepted, the new network will debut on May 27.
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