Terra 2.0: The Revival of the Fallen Terra (LUNA)

Read more: The crash of LUNA and UST.
Back on May 17, 2022, amid the Terra fiasco, Terra CEO Do Kwon unveiled a revival proposal (Proposal 1623) to save the Terra ecosystem, essentially involving a hard fork to link Terra to a new blockchain instead of the old one.Two days later, on May 18, 2022, the proposal was put to the governance vote among the Terra community, which ended on May 25 with 65.50% voting yes, 0.33% voting no, and 13.20% voting no with veto.As the majority of the community favored the CEO proposal, the new blockchain Terra 2.0 came into existence on May 27, 2022, and the Terra 2.0 mainnet officially went live and started producing blocks from Genesis Block 0 the following day.The reconstruction plan of Do Kwon will involve the following:
Read more: The Rise and Fall of Terra LUNA.
According to the amended Revival Plan, with a limited supply of 1 billion tokens, the new LUNA token of the new chain Terra 2.0 will be distributed as follows:
As part of the proposal, Terra commits to hosting an airdrop of new LUNA tokens to community members, as a way to compensate for some of their losses.
The amount of LUNA token that each holder will be eligible to receive depends on:Specifically, 70% (or 700 million) of the total LUNA 2.0 token supply will be distributed to Terra holders, and the eligibility for the airdrop is as follows:
After being delayed for one day for a not-disclosed reason, the mainnet (Phoenix-1) of the new Terra 2.0 chain was launched on May 28, with the first block being produced.
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Shortly after launch, with the support of many major crypto exchanges, the airdrop took place, and 210 million tokens were airdropped and added to the circulating supply (according to Terra’s self-reported data).
According to the Terra announcement, to check their wallet balances on the new Terra 2.0 chain, users eligible for the airdrop should select the “Phoenix-1” network in their Terra Station browser extension.Right after being reborn and listed on numerous major crypto exchanges, namely Binance, OKEx, Kraken, KuCoin, etc., LUNA 2.0 has witnessed unpredictable volatility.
Although LUNA 2.0 had a strong start, touching as high as $19.53 on the day of launch, it rapidly fell off a cliff to as low as $3.92 and is currently valued at around $5.76 on May 30. Meanwhile, the rebirth of the new Terra 2.0 chain and the new LUNA 2.0 token is not entirely welcomed by all crypto market participants. Despite most crypto exchanges showing support for LUNA 2.0, most notably CZ’s Binance, which previously halted trading on LUNA/UST, Coinbase - the leading US crypto exchange - not only unveiled no plan to list LUNA 2.0 but also suspended trading of UST and WLUNA across the Coinbase ecosystem.Billionaire Mark Cuban is among those who are not keen on investing in LUNA 2.0, or even the old Terra LUNA. BitGo CEO Mike Belshe even questioned on Twitter whether the new LUNA 2.0 could avoid the fate of LUNA 1.0.Most notably, before the LUNA 2.0 launch, Dogecoin co-founder Billy Markus called those who fall into the idea of a revival plan “dumb gamblers.”***1529477014985486338***
The significant plunge of nearly 80% in one day proved LUNA 2.0 a risky investment, especially for new and retail investors who have little power and are more prone to suffering major losses in failed crypto projects. So, the best advice now is to stay away from LUNA 2.0, at least during this volatile and unpredictable period.
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