A new solution proposal was shared today for the Terra network, which collapsed in the past days and caused all the money of crypto money investors to melt. Some details in the proposal shared by the network’s founder angered the crypto money world.
The crypto money world 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 due to this event, and the event also damaged the trust in stable coin 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 Terra Luna network recovery
The proposal presented 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 renaming the network Terra Classic and the token to be used in the Luna Classic (LUNC): With this step, 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, on the other hand, will keep the names on the existing network. In other words, the new blockchain Terra will carry the token name LUNA.
So, 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:
- Those who own a Luna Classic, that is, those who currently own a LUNA
- Those who have Luna Classic in their fixed wallet (Likewise those who currently have LUNA)
- Developers on the Terra network
- Those holding the UST after, not before, the attack that caused the UST to collapse. 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 stable coin crashed. This article started a great debate among those who followed the event closely.
The existing clauses also showed that those who purchased or continued to hold LUNA or UST after the attack will receive the new token with the establishment of the new blockchain.
So, how many LUNA tokens will be given to whom?
According to the proposal, there will be one billion new LUNA tokens in the new network. These tokens:
- 25% will be allocated to the community pool,
- 1% will be reserved for emergencies, which will be used for core developers with no deadlocks,
- 4% will be distributed over 4 years after a 1-year lockdown, according to the countdown to be started after the new token release.
- 35% to those who had a LUNA before the attack
- For wallets holding less than 1 million LUNA, distributed over 2 years after 1 year of lock,
- For wallets holding more than 1 million LUNA, an airdrop will be made after 1 year of lock and distributed over 4 years.
- 10% to LUNA holders after attack or start of new network
- At the start of the new network, LUNA holders will be given 10% of the 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.