Terra’s plan of restarting its collapsed ecosystem is gathering a lot of steam and support. The Terra 1623 proposal plans to fork the blockchain and restart with new tokens. Those who lost heavily in the recent collapse of UST and LUNA support the restart.
The past week saw three amendments made to the proposal regarding the token holders. It focuses on those who held the token before and after the collapse. Terra said via Twitter that Terra 2.0 will be a completely new blockchain.
There were misconceptions that the new Terra would be a hard fork of the former. Orbital Command took to Twitter to break down details of Terra 2.0 on 25th May. The lengthy post said the new blockchain will be live by Friday 27th May.
Who is Getting What?
As said by Orbital Command, Terra 2.0 native token will retain the name LUNA. While the old asset will be re-christened LUNA Classic. Four groups are tentatively eligible to get airdrops when the new asset goes live.
The first group is those who had both UST and LUNA before the system collapsed. The second group is those who bought the tokens after the system collapsed. A snapshot of the pre-collapse system was taken on 7th May.
Whereas, a snapshot of the post-collapse system was taken on 27th May. Holders of LUNA before the collapse will get close to 1:1 in the airdrop. Those who bought after the collapse will get 1:0.000015.
LUNA currently sells at $0.00016. UST holders will be getting not so much of a good deal. Those holding the coin before and after the collapse will get 1:0.033 and 1:0.013 respectively.
A holder of UST1,000 on 27th May will get an airdrop of 13 LUNA assets. While a person with the old LUNA on 27th May will get 0.15 of the new. This is based on every 10,000 tokens they had.
Just one-third of the total airdrop will occur on Friday. UST currently sells at $0.067.
In addition, the airdrop will be done in a bonded state. This means that there will be a 21-day period to “unbond” before transfers can happen. Unbonding made investors lose millions in investment when the ecosystem collapsed.
Crypto Winter is Imminent
Many projects have already promised to work with Terra 2.0. These projects include Sigma, Astroport, Nexus, Anchor, Random Earth, and Nexus, to state a few.
Nevertheless, Terra’s revival offers too little, too late for the general crypto market. This is especially because sentiment is strongly bearish on all sides.
The market has lost about 43% since the year started. That is almost a huge $1 trillion out the window as a bearish cycle starts.