Following the approval of the fork proposed by Do Kwon, the Luna 2.0 testnet is now live and the mainnet is expected to be up and running next Friday, May 27.
Nine days ago, Terraform Labs founder and CEO Do Kwon shared his plan to revive the ecosystem on the official Terra forum, following the debacle suffered by the nosedive of Luna and UST.
The "Propuesta 1623" consisted of a fork of the network creating a new blockchain, Terra 2.0, in which there would be no stable currency and which would be dedicated almost exclusively to Web 3 and DeFi projects, whose token will be LUNA (although we could call it Luna 2.0), and leaving the old blockchain, which will be called Terra Classic and its token will be Luna Classic.
It may interest you: The Plan to save LUNA and UST
The proposal was Approved yesterday with 65,5% of votes in favor (about 200 million) and only 13,2% of the votes were against and “with veto” (about 41 million). 21% of the voters (54 million) abstained. Votes are based on LUNA token holdings, with one vote per token, not one per user.
When will Terra 2.0 be released?
The Terra 2.0 testnet has now gone live, according to a tweet posted by Orbital Command, a Terra network validator dedicated to “educating the community.” The testnet is used to test the functioning of the blockchain.
The final network will be launched on May 27th and will be accompanied by an airdrop of the new LUNA tokens for all those users who did not sell their LUNA tokens (actually LUNA 2.0) or UST stablecoins during the ecosystem debacle.
According to the proposal, tokens will be distributed as follows:
- 30% to the community fund.
- 35% to LUNA holders before the attack.
- 10% to UST holders before the attack.
- 10% to LUNA holders after the attack.
- 15% to UST holders after attack.
All of these will receive their tokens on May 27th, when the network is activated. The rest of the tokens will go consolidating through a linear vesting in the next two years, with a limit of five months.
Despite the doubts that have arisen in much of the community about the Terra fork, Orbital Commander has explained on Twitter that many of the major projects such as Anchor, Spectrum, Nexus, Phoenix or Astroport have already moved to the Terra testnet.
The validator also explained that, at a minimum, the new blockchain will be at the center of the Cosmos ecosystem. Cosmos users can bring their assets to the new networks to offer services.
What's up with Do Kwon?
Despite the success of Do Kwon's proposal, the vote and the proposal itself have not been free of controversy.
First of all, the CEO himself has been embroiled in controversy since the fall of UST. Not only has he been linked to other previous scandals and the fall of other algorithmic stablecoin projects, but rumors have also appeared about a possible Kwon's indictment by Korean authorities.
It may interest you: Do Kwon proposes to divide Terra
Last week, Terra's entire legal team resigned, something that Kwon attributes to the complexity of the situation and not to “possible bad practices” in the case of UST.
At the same time, news broke that TerraForm Labs had changed its headquarters from South Korea to Singapore just days before the disaster, something that Kwon describes as “a mere coincidence” and assures that the decision had been made since 2021.
To make the situation worse, Kwon implemented several changes to “Proposition 1623” without consulting the community, something that some users of the ecosystem did not like at all.
On the other hand, Kwon has compared the fork of his blockchain with the fork that Ethereum implemented in 2016, after the DAO hack, trying to defend his proposal against all those who opposed it and who They advocated the burning of the LUNA to restore balance to the token supply.
However, it remains to be seen how the two networks will fare. Both Terra 2.0 and Terra Classic have been severely shaken in terms of user trust. In this regard, many community members and former investors have pointed out that as long as Kwon remains at the helm of the project, investors will not place their trust in him.
[hubspot type=cta portal=20298209 id=38fb28e1-1dc1-40e3-9098-5704ca7fcb07]
