The proposal is to have a new Terra (LUNA) chain and (old)Terra Classic (LUNC), with UST removed from the new chain.
Terra would have to branch off to create a new warp to save it from total collapse, Terraform Labs’ Do Kwon announced on Monday.
According to Kwon, the new plan will also help save the community around the cryptocurrency, which he says has a lot of good developments going.
Kwon said the plan is to present a new governance proposal to the community on May 18. Subsequently, a timeline would begin towards the creation of the Terra blockchain, the algorithmic stablecoin not being part of the new blockchain.
“$UST peg failure is Terra’s DAO hack moment – a chance to rise up anew from the ashes,” Kwon wrote.
New Terra Blockchain
If the proposal Kwon plans to put forward is passed, the new channel will go live on May 27. According to him, the new blockchain will be called Terra and will have its native token as LUNA. Meanwhile, the old channel would be called Terra Classic and would have its native coin as LUNC.
Under this proposal, Terra (LUNA) and Terra Classic (LUNC) will then co-exist.
In the event that the community adopts “Rescue Plan 2”, the team will drop LUNA on Luna Classic actors and holders, UST holders, and Classic channel essential application developers.
To make the new chain fully community-owned, Kwon proposes the removal of TFL’s wallet (terra1dp0taj85ruc299rkdvzp4z5pfg6z6swaed74e6) from the airdrop whitelist. Among other plans, Terra will support staking rewards of 7% to incentivize users and help secure the blockchain.
The token supply will be capped at 1 billion, the fired Terraforms Labs CEO noted.
Kwon’s proposal comes a day after Binance CEO Changpeng Zhao said he was ready to offer help to Terra, only that he would prefer to see a lot more transparency and accountability from the team.
The plan also follows reports that the Luna Foundation Guard blew up 80,000 BTC while trying to save the UST peg.
