Do Kwon, co-founder of the ailing Terra Luna cryptocurrency, proposed a revised strategy to revive the ecosystem on Monday, after a combination of substantial market volatility and inherent protocol design problems wiped out the vast majority of the blockchain’s market cap.
According to Kwon, Terraform Labs will provide a new governance proposal to split the Terra Luna blockchain called Terraform on May 18. (token name: LUNA).
The new chain, however, will not be tied to the TerraUSD (UST) stablecoin. Meanwhile, the old Terra blockchain will coexist with UST and be known as Terra Classic (LUNC). If Kwon’s proposal is approved, the new LUNA blockchain will go online on May 27.
According to the proposal, fresh LUNA tokens will be distributed to LUNC holders, UST holders, and Terra Classic blockchain developers. Furthermore, Terraform Labs’ wallet with the address terra1dp0taj85ruc299rkdvzp4z5pfg6z6swaed74e6 will be deleted from the airdrop whitelist, transforming Terra into a wholly community-owned chain.
The projected LUNC supply is capped at 1 billion, with 25% going to the community pool, 5% going to important developers, and 70% going to LUNC and UST holders at various events in May, subject to vesting conditions.
Earlier today, the Luna Foundation Guard, the ecosystems’ steward, revealed that it spent a large percentage of its cryptocurrency assets defending UST’s peg amid the market sell-off. As a result, it is improbable that the Terra ecology can be saved without the assistance of outside capital. Binance CEO Changpeng Zhao stated that he will support Terra’s community but would like to see greater transparency from the entity about current developments.