Do Kwon and his team have finally come up with their revival plan for Terra ecosystem, after the crypto community witnessed one of the biggest crashes in the history of digital assets earlier this month. The release date for the new chain, which is called Terra 2.0 has been reported Friday, May 27.
It was just a few weeks ago that we saw LUNA losing its peg and TerraUSD falling to the abyss and consequently TerraUSD which was meant to be a stable coin became unstable. To review, a stable coin is a currency that has a valuation of $1 that is backed by another currency or actual dollars to make its valuation stable; examples of these are Tether (USD) or USD coin (USDC).
A couple of days later, Do Kwon, co-founder and CEO of Terraform Labs, announced having a revival plan for the ecosystem by forking the chain and resetting the network ownership under a new token. Subsequently, upon persistent request from the crypto community, Kwon went against his initial plan and publicly shared a burn address for LUNA on Saturday but expressed his dispute against burning the coins saying that he doesn’t think sending tokens to this address to burn tokens is a good idea and that it will have no other results than losing the tokens.
After a few consecutive meetings and Kwon’s proposal passing in a split vote, the community have come to a consensus about the definite next step for the community which is Terra 2.0.
Currently developers are activating a test network for the new block chain. However, the Terra 2.0 chain will be ready for a main network launch by May 27 with no further hesitation.
The new blockchain will receive the name Terra which will run without any algorithmic stablecoin and the old chain will be called Terra Classic. All holders of the earlier LUNA and UST cryptocurrencies will receive the new crypto in an airdrop on Thursday.
Due to technical restrictions, it won’t be possible to include all LUNA and UST holdings on Terra, therefore, users with LUNA or UST who are willing to be included in the post-attack snapshot should go back to the Terra blockchain.
Some of the most popular cryptocurrency exchanges have announced supporting the Terra 2.0 launch. Among these are Huobi and the world’s largest crypto exchange Binance. “The Terra community just passed a vote to ‘Rebirth Terra Network’. We are working closely with the Terra team on the recovery plan, aiming to provide impacted users on Binance with the best possible treatment. Stay tuned for further updates.” said Binance.