As huge turbulence was hovering within the space that the Terra executive had not handled the crisis in a proper way, the founder Do Kwon came up with a relief plan. As per the relief plan, the existing ecosystem would become Terra Classic with the token named LUNC. And the newly created chain would be known as Terra with the token LUNA. Importantly, the new chain will nowhere be linked to the UST stablecoin, yet be operational with the old chain.
Interestingly, over 90% of the Terra community opposed the proposed changes and voted unanimously to burn the minted excess tokens. And what’s more, LUNA’s price increase plan also seems not to have been well aligned. As some believe the platform is building a whole new blockchain disguised as a fork.
The chain may have a brand new network and mainly the LUNC tokens are speculated to be burnt to raise the LUNA price in future. However, despite huge opposition from the Terra community, founder Do Kwon is said to have stuck with the V2 plan. However, the voting result may go against the fork. The Terra community may be largely interested to buy back all the minted coins to burn them.
However, the Luna Foundation Guard was left with only $70 million in assets, which is a small enough amount to redeem the entire reserve. Also, people think that after a failed 80,000 BTC liquidation experiment, the foundation is about to try another blockchain forking experiment again. It is widely assumed that the founder considers the welfare of institutional investors rather than retail traders.
On the contrary, when the community sentiments are along with the result obtained by voting, which is largely negative, a significant upswing may make its way out. And hence if the founder continues with the revival plan and launches LUNC, then an adverse impact on the LUNA price may be clearly witnessed.
