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Community Approval of Kwon’s Proposal for Terra’s Recovery

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HIGHLIGHTS :

  • Voting was held recently on the plan of recovery
  • A new blockchain will be launched for LUNA
  • Not much is known about the Terra 2.0

A large section of the Terra community is in support of the decision to relaunch the protocol. However, some are still annoyed by the huge drop in LUNA and UST

Voting was held recently on the plan of recovery

The massive drop in stablecoin project Terra earlier this month had an impact on the entire crypto segment. It is being revamped as ‘Terra 2.0’ to compensate investors for the loss caused by this fall. A recent vote was held on a recovery plan presented by Terra’s chief executive officer Do Kwon. In this, more than 65 percent of Terra’s investors have approved this proposal.

A new blockchain will be launched for LUNA

However, controversy has also started regarding this proposal. Approval of the proposal means that a new blockchain will be launched for LUNA only and the LUNA token will be called LUNA Classic. The old Terra blockchain will continue to exist, but the team involved has decided to abandon the failed stablecoin UST. As part of the proposal, the Terra team is working on getting support from multiple centralized exchanges to support their community for an upcoming airdrop. Airdrops will be made to LUNA and UST holders prior to the 35 percent drop in LUNA tokens. A large portion of the token distribution will be allocated to Terra dApp developers and the ecosystem as a whole.

Not much information has been given about Terra 2.0. A large section of the Terra community is in support of the decision to relaunch the protocol. However, some are still annoyed by the huge drop in LUNA and UST. Kwon says that the purpose of launching the token in a new way is to support the Terra-connected platform.

Not much is known about the Terra 2.0

Stablecoins are cryptocurrencies that attempt to link their market price to a reserve asset such as gold or common currencies. These are more commonly used for digital transactions that involve converting virtual assets into real assets. USD Coin, Tether, and Binance USD are some of the popular stablecoins, which are pegged to the US Dollar. Stablecoin, a rapidly growing version of crypto, has emerged as a major medium of exchange. It is often used by traders to remit funds. It is easy to exchange major stablecoins for bitcoin or other cryptocurrencies.

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