Due to Kwon’s announcement to reverse time, hard fork Terra back before losing de-peg

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2022-05-18 08:53:29

In order to save what happened to LUNA and the Terra blockchain recently, the hard fork implementation plan was actually announced by Terra Platform Labs CEO – Do Kwon. Accordingly, the entire Terra ecosystem will be brought back before the “hacked” time, and the UST stablecoin will be removed.

Do Kwon and proposed how will the new Terra be implemented?

Early on May 17, via the social network Twitter, the head of Terraform Labs, CEO Do Kwon posted a revised version of the “revival” proposal he made earlier.

It seems that after being criticized by CZ for the “lack of transparency” with LUNA, the Terra team wants to prove themselves in this effort. One of the other efforts is Terra once “burned” up to 3 billion USD of LFG’s Bitcoin to save the price of UST in 3 daysbut still failed.

*LFG: Luna Foundation Guard – a Bitcoin reserve that Terra set up specifically to maintain funds for stablecoin UST.

See more: OFFERThe amount of LUNA Tokens becomes hyperinflation, the Terra blockchain has to be suspended

Remove stablecoin UST

“Terra ecosystem is more than just stablecoin UST.”

This action of Do Kwon is to acknowledge that the “effort” to use LUNA to save UST, which increased 400 million to 6.9 trillion in just 72 hours, was completely meaningless.

So, just like Ethererum experienced the infamous DAO hack that reversed time to give birth to Ethereum Classic, Terra wants to do the same.

Terra Classic (LUNC) and Terra (LUNA)

The proposed Terra hard fork means that this blockchain will be brought back to the time before the UST lost the 1 USD (de-peg) mark.

Now the old blockchain will have a name Terra Classic with old tokens Luna Classic (LUNC). And the new blockchain will keep the name Terra / Terra 2 and tokens LUNA. The only thing that’s different is it will no UST stablecoins.

According to Do Kwon’s statement, both the new and old Terra blockchains will work in tandem, making sure not to remove Terra Classic to gradually migrate to the new Terra.

Time to conduct the hard fork

  • Capture the balance at the time of “attack” at block Terra Classic number 7544914 (10:00:04 PM on 05.07.2022, VN time).
  • Capture the balance at the time of deploying the new blockchain (Launch) at block Terra Classic number 7790000 (02:59:51 AM on May 27, 2022, VN time).

After a few hours of capturing the Launch balance, the blockchain will begin to be hard fork. Time may be adjusted, depending on the actual situation.

New LUNA Token Allocation

With a total supply of LUNA of 1 billion tokens, they will be sent to LUNC holders, LUNC staking, UST holders, and essential application developers for the Terra network via an airdrop event. Specifically, the ratio is as follows:

  • 25% for the community Pool staking, managed by the governance mechanism through staking, the inflation rate from staking rewards 7%/year.
  • 1% for Essential App Developers Emergency Fund, unlocked immediately upon airdrop.
  • 4% for Essential App Developers, locked for 1 year and gradually unlocked over the next 4 years.
  • 35% for Bonded / unbonded LUNA (LUNA converted to bLUNA, in or not in staking)

The balance in the wallet < 1 million LUNA is locked for 1 year, gradually unlocked in the next 2 years.
The balance in the wallet > 1 million LUNA is locked for 1 year, gradually unlocked in the next 4 years.

  • 10% for LUNA Token Holders at the time of Launch balance capture, unlock 10% now and 90% in the next 2 years.
  • 25% to UST Token Holders at the time of Launch balance capture, unlock 10% now and 90% for the next 2 years.

The important point is that the airdrop will not accept transfers to the Terraform Labs wallet. In other words, Terra accepts this whole new blockchain to be managed by the community. Do Kwon also said that he is contacting major exchanges to coordinate airdrop activities.

Essential applications for the Terra . network

  • The infrastructure: Setten
  • DEX exchange: Astroport, Loop, Terraswap
  • Blockchain Explorer: Finder, Terrascope
  • Payment, fiat gateway: Kado, Alice
  • Wallet: Station, Leap, Falcon
  • Lending: Mars, Edge
  • Data analysis: Coinhall, Flipside
  • Staking service: Stader, Lido, STEAK, PRISM
  • Launchpad: Star Terra
  • Cross-chain bridge: Axelar, Wormhole
  • Stablecoins: USDT/USDC via Wormhole Bridge
  • NFT Exchange: Randomearth, Knowhere, Oneplanet, Luart, Talis
  • Insurance: Risk Harbor
  • DeFi Strategy: Nexus, Apollo, Aperture
  • Games: UNOPND

In the list above, it is easy to see the disappearance of two “key points” that led to the downfall of the old Terra blockchain, including stablecoin UST and lending Anchor Protocol – the protocol that provides interest rates. 18 years for UST deposits.

It is known that at the time of launching the new blockchain, the above projects will receive an instant allocation of 10 million LUNA (1% of the total supply). Only projects with clear products and achievements will be listed in the project list, allocating the remaining 4% to the project list.

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