In the middle of May, the blockchain protocol Terra that built its economy around fiat-pegged stablecoins, TerraUSD (UST) in particular, unexpectedly collapsed. As a result of a large $300 million token sale, the price of UST crashed and lost its $1 peg. Consequently, the price of Terra’s governance token, LUNA, also demonstrated a dramatic drop.
According to this crypto trading’s blog, Terra’s CEO Do Kwon has officially stated that Terra needs a fresh start, UST was a failed stablecoin, and the community “must achieve a speedy consensus.”
However, right after the disillusioned investors were ready to sink into despair, Terraform Labs announced its plan to bring the protocol back to life and release a brand-new chain. The new LUNA token will also replace its predecessor. The former chain and token won’t just sink into oblivion – they will soon be known as Terra Classic and LUNA Classic and co-exists with the new blockchain.
The New Beginnings
Terra’s return has been met with enthusiasm, as UST and LUNA investors are promised to get their fair share of LUNA 2.0 tokens. The airdrop date is set for May 27, and on that date, nearly a third of 1 billion tokens will be allocated to the community of holders, stakers, and developers. The rest will be distributed within a few years.
As for the new chain, it will not be a fork of Terra Classic. Instead, it will be built from scratch, starting from the genesis block, and won’t share any history with the previous chain. UST stablecoin, however, is not going to be a part of the come-back.
HitBTC have already confirmed the listing of the renewed LUNA. The token will be available for the HitBTC users on May 27.
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