A recent announcement by the Terra Blockchain team states that the community has voted for and passed a proposal to launch a new version of Terra’s genesis blockchain without an algorithmic stabilizecoin. To prepare for the new network, the governance proposal “Terra Ecosystem Revival Plan 2” was amended. The final Terra Core codebase release has been released.
Terra Ecosystem Rebirth to Take Place on May 27, New Version of Terra Core Released and Audited
A new blockchain, based on Terra’s blockchain network, will be launched on May 27. It does not include an algorithmic stabilizecoin such as terrausd (UST). The “Luna Classic” (LUNC) will be the name of the old chain token, while the “Luna” (LUNA) will be the new name. The Terra team explained that governance proposal was passed on May 25. The latest Terra Core code was released, and the codebase has been audited by SVC Security.
The new LUNA token distribution is further described in the governance decision. It includes 30% for community pool holders, 35% pre-attack LUNA holder, 10% pre-attack aUST holders and 10% post-attack LUNA holder. Post-attack UST holders will be eligible for 15% of supply. The Terra team also mentioned that the Terraform Labs wallet and Luna Foundation Guard wallet will be deleted from the LUNA Airdrop.
The Terra team’s twitter thread adds:
Terra will become a fully-community-owned chain by the removal of these wallets on its airdrop whitelist. This is a significant step in empowering our ecosystem.
Controversy, a Class Action Lawsuit and Mirror Protocol Accusations
The Terra blockchain network has been the subject of a lot controversy. Do Kwon is the face of the project. was recently arrested after visiting Kwon’s house and knocking on his doors. He was a LUNA investor that had lost $2.4million. A Twitter account called @fatmanterra, (Fatman) has stated that a class action lawsuit was being planned to obtain compensation for the victims of UST and LUNA.
Fatman stated that the action would be free to join, and that the team is currently researching jurisdictions such as Singapore where investment protection can be more lax. Fatman stated
I am pleased to announce that three law companies have offered to contribute over $15m (or more) to the historic fight for justice. They are looking to finance the case and will collect fees as a contingency fee. Without you, this could not have been possible.
However, that’s not all Fatman has done. The Twitter account has made accusations about Terra-based projects as well as partners. One specific thread by Fatman claims Terra’s Mirror Protocol was “really just an elaborate scheme to enrich Do Kwon/VCs.” It also discusses the alleged manipulation of Mirror Protocol’s governance.
Centralized Exchange Platform’s Binance and Bybit Plans to Support New LUNA Tokens
The controversy and the slew of accusations made on social media seem to not be bothering the Terra team. Many rumors have been floating around social media about Kwon and the Terra team’s decisions. Kwon has responded to questions after questions regarding the new Terra chain and eligibility.
The Terra team explains how it works closely with centralized exchange partners such as Binance and Bybit to support LUNA holders that have left funds on exchanges. Huobi Global announced that it would support a new LUNA network. Binance also tweeted about the rebirth and success of Terra’s network.
“The Terra community has just voted to ‘Rebirth Terra Network’,” Binance stated. “We are working closely together with Terra on the recovery plan. We aim to provide Binance users with the best treatment. Keep checking back for more updates.