Do Kwon's New Terra Revival Plan Fights for Support as Trust Challenge Remains
Another Terra (LUNA) ecosystem revival plan by Terraform Labs (TFL) CEO and Co-founder Do Kwon seems to have the support of at least some Terra developers, while trust issues still pose serious challenges to this plan.
In a Monday post and an accompanying Twitter thread, Kwon suggested forking the Terra network into a new chain without the algorithmic stablecoin terraUSD (UST), whose peg failure led to the entire ecosystem crashing.
More specifically, the current chain will continue to exist and will be called the “Classic” chain, with the current LUNA termed as luna classic (LUNC) token. The new chain will be called “Terra” with its token Luna (LUNA).
"Both chains will coexist," Kwon said.
New LUNA tokens will be airdropped to LUNC stakers, holders, residual UST holders, and essential app developers. Moreover, TFL, the body behind Terra, will have its wallet removed from the airdrop, making Terra a fully community-owned chain.
In terms of token distribution, Kwon has proposed 1bn new Luna tokens to be minted and distributed among the community pool (25%), Luna holders "pre-attack" (35%), Luna holders at "Launch" (10%), UST holders at "Launch" (25%), and developers (5%).
"We believe this token distribution, in addition to best efforts by LFG to make UST holders whole, best solves for the varying interests and time preferences for each stakeholder group, and most [importantly], creates the most viable path to revive the Terra ecosystem," he said.
Some Terra developers have already shown support for the proposal.
For one, Chauncey St. John, CEO at Terra-based Angel Protocol, which creates perpetual charity endowments, said he supports a Terra fork "by builders, for the community, around social impact, with a strong ecosystem of
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