A one-of-a-kind incident in the crypto market was the Terra [LUNA] debacle of last week. With spiraling investors and the start of a never-ending blame game, clouds of uncertainty haunt the market even today.
If that wasn’t enough, the infamous Terraform Labs co-founder and CEO, Do Kwon, came out of his temporal hiatus on 16 May with what he titled the “Terra Ecosystem Revival Plan 2.”
According to Kwon, the Terra ecosystem is worth preserving as it
“Contains hundreds of developers working on everything from DeFi to fungible labour markets, state-of-the-art infrastructure and community experience.”
He also mentioned that the Terra Station has a large install base, with over a million users across the world. Hence, Revival Plan 2 is needed to carefully outline the steps the Terra Team would take to revive the system’s native token, LUNA.
The ‘Do Kwon Strategy’
According to Kwon, the Terra Blockchain, as it exists today, would be forked into a new chain. The new chain would be without the kind of algorithmic stablecoin that brought Terra to its knees.
He also stated that the old chain would be referred to as the “Terra Classic” and the new chain would be named Terra. He noted further that the two chains would have different tokens. The Terra Classic Chain would have its token named ‘Luna Classic -LUNC.’ On the other hand, Terra’s chain would be referred to as ‘LUNA.’
6/ The Terra chain as it currently exists should be forked into a new chain without algorithmic stablecoins called “Terra” (token Luna – $LUNA), and the old chain be called “Terra Classic” (token Luna Classic – $LUNC). Both chains will coexist.
— Do Kwon 🌕 (@stablekwon) May 16, 2022
This approach is similar to that adopted by Genesis DAO in 2016. Following its hack, the existing Ethereum Chain was launched with the original Ethereum Chain named Ethereum Classic.
Furthermore, Kwon noted that the new token LUNA would be airdropped to Luna classic stakers, Luna classic holders, residual UST holders, and the essential app developers of Terra Classic.
According to him, TFL’s (TerraForm Labs ) wallet would be removed from the whitelist for the airdrop, thus making the new chain, Terra, a fully community-owned chain.
He further noted that this would make $UST holders help achieve a balance of interest amongst stakeholders, and most importantly, create the most viable path to revive the Terra ecosystem.
7/ New $LUNA will be airdropped to $LUNC stakers, holders, residual UST holders, and essential app developers.
Also, TFL’s wallet will be removed from the airdrop, making Terra a fully community-owned chain.
— Do Kwon 🌕 (@stablekwon) May 16, 2022
Commenting on the importance of its developers to the success of its new chain, Kwon noted that a large portion of its token during the proposed distribution would be allocated to providing Terra’s developers with an emergency allocation of Luna tokens to fund runway, as well as a pool of tokens earmarked to align the interests of the base layer with its builders.
9/ Terra 2.0 is focused on developers – developers will get an immediate emergency allocation of Luna tokens to fund runway, as well as a pool of tokens earmarked to align the interests of the base layer with its builders.
— Do Kwon 🌕 (@stablekwon) May 16, 2022
Much Ado About Nothing
With the community voting on the hard fork proposal scheduled for 8 May, many who lost faith in the LUNA token believe this to be another attempt by Kwon to scam investors.
With rather brash reactions to Do Kwon’s proposal, even if it later proves to be successful, the Terra Ecosystem, courtesy of its founder appears to have lost the public’s vote of confidence.
