Terra to Create New Blockchain Despite Furious Indications from Investors

There will be a fresh round of LUNA token airdrop to existing investors as the proposal to launch a new coin has been approvPhoto by Camille Lemmens from altcoinbuzzed, The new network is scheduled to launch on Friday. 

 It seems to have been a nightmare as Cryptocurrencies haven’t had a good time in May. LUNA was recorded as the highest loser as it recorded an unprecedented collapse from $85 in the early days of the month to a fraction of a penny. 

Terra’s Blockchain to be revived: 

Do Kwon made a proposal on the 16th of May for the creation of a new blockchain which will be modeled on the previous one. The community voted in favor of the proposal and there is a move for the new blockchain to launch on the 27th of May. 

This announcement was officially made after votes were closed with a record of 65.5% of investors agreeing that a new network should be established without the implementation of the UST algorithm. 

21% of the voters disagreed with the proposal while 13.2% of voters chose the “No with Veto” option. The project would have been dumped if 33% of voters disagreed with the project. 

Do Kwon earlier maintained that the ecosystem and its community are worth preserving due to the strong foundation it was built on.  It is pertinent to note that the new Terra blockchain will not support TerraUSD (UST.

A tweet from Terra’s Twitter account was quoted saying

"With overwhelming support, the Terra ecosystem has voted to pass Proposal 1623, calling for the genesis of a new blockchain and the preservation of our community,"

 Terra Station claims to have more than one million users with its strong brand recognition around the world and cannot be allowed to die.

 The proposal's approval indicates that the company will create a new network which will be launched on Friday, with rounds of LUNA tokens being airdropped to existing investors as compensation.

"UST peg failure is Terra's DAO hack moment," Do Kwon said in reference to the Ethereum hack in 2016. "A chance to rise anew from the ashes." said Do Kwon

How This Will Work:

 With the existing blockchain being renamed Terra Classic, It is agreed that the new Terra will produce luna coins, and the existing luna will turn into luna classic. Those who lost money in the Luna/TerraUSD crash will receive minted new luna coins which will be distributed to them.  0.5% of the total supply of the new Luna token will be given to the developers who are building apps to finance the project. 

On the other hand, those who owned the Luna token earlier before the attack will receive 35% of the new token and 10% for those that continued to hold the altcoin during the bear period from $83 to lower than one cent. There are also compensation plans for those that held UST stablecoin.