Nine days ago, Terraform Labs founder Do Kwon shared a plan to revive the Terra Ecosystem after its stablecoin UST and cryptocurrency LUNA nosedived earlier this month, bringing down the crypto markets with them.
Today, Terra’s plan has passed and been approved by the community.
“Terra 2.0 is coming,” Terra’s official Twitter account tweeted on Wednesday. “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.”
The proposal will effectively create a new layer-1 Terra blockchain without its algorithmic stablecoin. The old blockchain will be called Terra Classic (LUNC) and the new blockchain will be called Terra (LUNA), the company tweeted. The Luna token is new and should not be confused with the old one under the same exact name (confusing, I know.)
The proposal had 65%, or about 200 million votes, in favor of the plan, while about 21%, or 54 million, abstained, and about 13%, or 41 million, voted no, according to data from Terra Station. The votes are cast based on LUNA token ownership, with one vote per token, not per user.
Given that it has passed its threshold, the relaunch plan will be rolled out on May 27.
Per the terms of the proposal, Terra will airdrop tokens to community members who never sold their old LUNA tokens or UST stablecoins amid the ecosystem’s downfall.
The snapshot for Terra 2.0 is expected on Thursday. Terra developers said in a post that, “Going by block times, the post snapshot block, 7,790,000, could happen as soon as May 26, 2022, 16:20:00 UTC.”
They further added, “The supply at genesis is considerably lower than anybody is anticipating, closer to 116.7M rising to 182M after [one] year.” They said this, addressing community concerns about a highly inflated LUNA supply.
The revival plan, although passed by Terra’s network validators, was pushed live even as results from a preliminary online poll on a hard fork plan found minimal backing among community members. Some 92% of over 6,220 voters on a previously held online poll voted against the change, with the most popular responses calling for “no fork,” as reported.