The proposal argues that “Terra is more than $UST,” and Terraform Labs aims to put this proposal up for a governance vote on May 18 Asia time.
Earlier this week, Kwon had announced collateralized readjustment in its mechanism as part of the chain’s first recovery plan to re-peg UST to the U.S. dollar.
New chain minus the algorithmic stablecoin
Calling the UST peg failure, Terra’s DAO hack moment, the co-founder assured a fresh start after he released the second proposal for the ecosystem. The Fork proposal will split the Terra chain into a new chain without the algorithmic stablecoin.
Kwon stated that the old chain will be called Terra Classic (token Luna Classic – LUNC), and the new chain to be called Terra (token Luna – LUNA).
By 21 May, TFL aims to make network launch instructions available for the validators, with the network launch set for 27 May if the proposal passes without hurdles.
As per the release, Luna will be airdropped across Luna Classic stakers, Luna Classic holders, residual UST holders, and essential app developers of Terra Classic. Out of the 1 billion Luna tokens, 25% will belong to the Community Pool. Kwon also noted that “Terra 2.0 is focused on developers,” – who will get an immediate emergency allocation of Luna tokens to ‘fund the runway.’
Therefore, a large portion of the token distribution is said to be allocated to existing Terra Dapp developers, while aligning long-term developer interest with the ecosystem. The proposal highlights, “Network security to be incentivized with token inflation. Target staking rewards of 7% p.a.”
12/ The Terra community is my family. I will always be here, no matter how hard it gets. Let's build it back up again – together. — Do Kwon
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