Cryptocurrency

Terra Lab's Do Kwon Proposes Plan to Revive Terra Ecosystem After Collapse

Consisting of a blockchain fork and the creation of a new token.

Cryptocurrency

Terra Lab's Do Kwon Proposes Plan to Revive Terra Ecosystem After Collapse

Consisting of a blockchain fork and the creation of a new token.

On Monday, May 16, Terra Lab’s Do Kwon proposed Terra Ecosystem Revival Plan 2, which calls for a fork of the Terra chain into a new chain that will exist without its algorithmic stablecoin UST.

Kwon believes that while UST has failed, it is important to preserve the network of developers and the community that has formed around the ecosystem, including hundreds of developers and over a million Terra Station users. The co-founder stated that Terra Luna has garnered “strong brand recognition and a name that almost everyone in the world will have heard about.”

The fork itself will lead to the creation of a new chain without the algorithmic stablecoin UST. Kwon wrote that the old chain will be called “Terra Classic” (token name: Luna Classic – LUNC) and the new chain to be called “Terra” (token name: Luna – LUNA).

According to the proposal, the new LUNA will be airdropped to Luna Classic stakers, holders, residual UST holders, and essential app developers of Terra Classic — with the old chain eventually becoming fully community-owned.

“Essential app developers looking to join should signal public support for the fork on Twitter and social channels, and coordinate with the community,” he said. This line, along with a tweet from Kwon calling on “Terra developers to signal support & commit to build on the fork on public channels” left some users concerned about a possible recurrence.

Recently, CZ of Binance shared his thoughts on the proposed fork, saying that it does not provide any real value and is “wishful thinking.” Many of the comments under the proposal instead call for the buying and burning of the existing LUNA as an alternative solution to a fork.

In other Crypto news, Coinbase announces a new decentralized app browser and wallet.

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