Luna’s Revival Plan 2, ‘Forking Terra’s Blockchain’ Also Goes to Gutters

Terra

Let’s see if Do Kwon’s revival plan of Terra’s Blockchain will be enough to save Luna.

Do Kwon, Founder of the beleaguered blockchain platform Terra, plans to revive the network with a new ‘hard fork’ that will help solve the design flaws in the ecosystem. The move comes after market volatility and inherent protocol design flaws wiped out a majority of Terra Luna’s market cap last week. A hard fork is a radical change to a network’s protocol that makes previously invalid blocks and transactions valid, or invalid. A hard fork requires all nodes or users to upgrade to the latest version of the protocol software, according to Investopedia.

 

How Will the Revive Plan Work?

Moreover, Terra’s ecosystem is not strong enough to build up the market cap of both stablecoins, and the trust of many users has been crushed. Hence, the most practical action, for Kwon, would be to provide a sustainable structure to preserve the developer ecosystem and its community, which would be to reform the chain. In short, validators should reprogram the network ownership to $1 billion, which would be distributed among the affected parties. For recipients who held Luna prior to the de-pegging, $400 million should be allocated (40%) to them. Do Kwon believes that retaining the network’s fair ownership in the hands of its strongest believers and builders is crucial, and so, the new chain deserves to be community-owned.

According to Kwon, new LUNA tokens will be airdropped to LUNC “stakers, holders, residual UST holders, and essential app developers” of the Terra Classic blockchain. Terraform Labs (TFL) will also remove its wallet from the whitelist for the airdrop to make Terra a fully community-owned ecosystem, similar to platforms like Ethereum in some ways, Business Insider reported. The supply of LUNC will be capped at one billion, of which 25 percent will be reserved for the community pool. About 5 percent will go to essential developers, while 70 percent will be given to LUNC and UST holders at various snapshots of events in May. The tokens will be subject to vesting conditions.

 

Will This Be Enough to Save Luna?

According to the experts, it is still unclear if the proposal will restore the Luna ecosystem. Luna crypto’s price, which stood at $80 earlier this month, had fallen to nearly 5 cents last week. The ecosystems’ steward Luna Foundation Guard also said on May 16 that it had utilized an overwhelming portion of its cryptocurrency reserves in an attempt to defend UST’s peg during the market sell-off, Coin Telegraph reported. Others like Changpeng Zhao, CEO of Binance, are also not convinced with Kwon’s proposal although Zhao said he plans to support Terra’s community. In his revival plan, founder Do Kwon talks about Terra possessing a “vibrant developer ecosystem” and “strong brand recognition”. To preserve the developers and the ecosystem, Do is planning to “reconstitute the chain”. As Terra plans to pivot to a full-fledged L1, it acknowledges the fact UST and LUNA no longer exist in their current form. Now, the Terra ecosystem had the backing from some of the biggest venture capital firms like Galaxy Digital. Why would they continue to reinvest in a system that got burnt to ashes in a matter of days?

Furthermore, it will be difficult for them to convince their investors to put their money back into one of the biggest failed projects in the history of crypto. For a fact, we know that the Terra community is one of the biggest. However, the trust of investors won’t be the same anymore. Further, reports suggest that Do Kwon had previously failed in one stablecoin project dubbed, “Basis Cash”.

 

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