Do Kwon’s proposal to revive the beleaguered Terra blockchain has been approved. The controversial Terra proposal 1,623 received a 65.5% approval rate with over 200 million votes in favor. While 20.98% abstained from voting, the “no with veto” votes comprised 13.20%.
The rebirth of Terra
This will essentially lead to the creation of a new Terra chain without the UST algorithmic stablecoin. The second iteration will keep the original name Terra (LUNA), while the old chain will be called Terra Classic (LUNC). The new one will also focus on attracting decentralized financial applications. Kwon initially described the stimulus package as a “hard fork” that would split the blockchain in half. It was later modified by Terraform Labs.
According to the official Twitter handle of the Terra ecosystem, Terra 2.0 is slated to go live on the mainnet on Friday, May 27. Subsequently, LUNA 2.0 tokens, which will be airdropped to the existing stakeholders, will be available for trading.
Currently, Kwon is being targeted by South Korean authorities. Despite Terra’s stimulus plans, not everyone is convinced. And investors are furious even as the vote passed with relative ease, barring one such incident, reported by CryptoPotato, when the outspoken executive and his team were criticized by many users for changing the proposal last week after many had already voted for the original.
Reactions
Cryptocurrency exchange Huobi has confirmed that the platform will support Terra 2.0. Binance also revealed that it will work with the Terra team on the recovery plan and notified its users:
“We are working closely with the Terra team on the recovery plan, aiming to provide impacted users on Binance with the best treatment possible. Stay tuned for further updates.
However, the popular decentralized finance (DeFi) project Lido Finance’s DAO voted against providing support for the new chain. A wide margin of 95% of the voters rejected the new reboot.
It was also reported that Kwon contacted five major South Korean cryptocurrency exchanges and asked them to list Luna 2.0, a claim he denied. This comes after major platforms in the country, except for Coinone, ended transaction support for LUNA.
