The votes are in. The people have spoken and Terra 2.0 is going ahead. As proposed by founder Do Kwon, the LUNA community has voted in favour of the blockchain’s revamp that will see holders of the collapsed cryptocurrency receive an airdrop of the new token.
Earlier this month, Terra UST depegged from the US dollar, causing its sister token LUNA to crater from around US$80 to US$0.00001 in the span of a week.
All eyes were on Do Kwon to save the community and revive the lifeless coin. Kwon initially suggested a tiered repayment system for the first batch of users but updated the proposal to include all holders.
Read more: [UPDATED] “Terra is more than $UST”: Do Kwon Plans to Revive Blockchain From LUNA’s Ashes
Kwon then proposed that the old chain would be renamed to Terra Classic with token Luna Classic (LUNC) and the new chain would called Terra with token Luna (LUNA). A week ago, Kwon opened the proposal to a vote for all LUNA holders.
On Wednesday, Kwon’s proposal was approved by the community, causing LUNA to jump 18% to as high as US$0.000268 (yes, we know…).
Of the 305,975,278 who voted, 65.50% voted in favour of Do Kwon’s proposal, 20.98% abstained, 0.33% voted no, and 13.20% went for “no with veto.”
Under the new proposition, new LUNA tokens will be airdropped to previous holders of UST and LUNA based on “snapshots” taken of the old Terra newtork for verificaiton.
“Pre-attack Luna holders distribution – for all holders with a snapshot balance of 10k Luna or less, 30% unlocked at genesis; 70% vested over 2 years thereafter with 6 mnth cliff,” the proposal reads.
“This is to ensure that small Luna holders have similar initial liquidity profiles. This would cover 99.81% of Luna wallets while only representing 6.45% of total Luna at the Pre-attack snapshot.”
Terraform Labs – Kwon’s company behind the blockchain – will have its wallet removed from the airdrop’s whitelist to ensure that the revamped Terra is a fully community-owned chain.
With 65.5% voting in favour of the proposition, there still remains a significant amount of LUNA holders who aren’t completely sold on Do Kwon’s next move.
On social media, many unanswered questions remain. In response to Terra’s official announcement on Twitter, users expressed concern about how the airdrop will be executed. Many questioned how the airdrop will be received if their LUNA is stored in Metamask, Binance, Coinbase, Kucoin and other exchanges.
Others also questioned what exactly is considered “pre-attack” and “post-attack” as Terra has offered different airdrop packages for users that fall in either category.
Terra has yet to provide a public response to these concerns but aussumedly Terraform Labs has already considered these issues.