We witnessed the crypto market go through heavy turmoil in the past few weeks. Stable coins suffered its most wrath. LUNA‘s famous downfall and the de-pegging of the UST coin created headlines in the crypto space. At one point, LUNA was down by more than 99%. Even the arbitrage mechanism of the ecosystem failed to resolve the issue.
As it turns out, Binance delisted the LUNA/BUSD and UST/BUSD on May 13. It has now relisted the pair now.
At that time, the Terraform Labs founder Do Kwon proposed a plan in a Twitter thread to revive the system. Unfortunately, it didn’t work out.
However, anyone who thought Do Kwon was done might be wrong since the founder has devised a latest plan to revive the near-dead ecosystem. In a recent blog, Kwon revealed the plan titled Terra Ecosystem Revival Plan 2.
Impact On LUNA’s Price
As of May 22, Luna and UST were up 62% and 25%, respectively. Now, this rise in the prices is being attributed to the new plan released by Do Kwon.
However, at the time of writing, Terra was trading at $0.000193, down 5.09% in the last 24 hours.
Terra Ecosystem Revival Plan 2
In the blog post, he explained that a new Terra chain would be developed. However, this time it won’t have an algorithmic stable coin. The new chain will be known as Terra (token Luna – LUNA), while the old chain is dubbed Terra Classic (token Luna Classic – LUNC).
Luna Classic stakers, Residual UST holders, Luna Classic holders, and key Terra Classic developers will receive the airdropped LUNA.
Terra will become a fully community-owned chain; as for the airdrop, TFL’s wallet (terra1dp0taj85ruc299rkdvzp4z5pfg6z6swaed74e6) will be removed from the whitelist.
In addition, a big portion of the token distribution will be reserved for:
- Providing emergency runway for existing Terra Dapp developers.
- Aligning the developer’s interest with the long-term success of the ecosystem.
Moreover, network security will be incentivized with token inflation.
Roadmap
May 17th – Announcement.
May 18th – Governance proposal released.
May 21st – Terra Core release is cut. Validators get access to network launch instructions.
May 25th – Essential app developer registration completed.
May 27th – Genesis file built using final launch snapshot.
May 27th- Launch of the Network.
It would now be interesting to see how this new plan contributes to the Terra ecosystem and will it be successful?
Due to the Terra meltdown, many raised questions about the future of Terra. The relationship between Luna and USTwas the major source of its value.
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Source: https://www.thecoinrepublic.com/2022/05/23/this-move-by-do-kwon-made-the-luna-prices-soar-high/