Currently, even the least informed crypto observer has heard the crash-and-burn gist of the Terra blockchain, its native currency Terra Luna (LUNA), and its stablecoin TerraUSD (UST). In case you’re out of the circle, here’s a short overview and the potential ramifications of UST’s deep. UST’s crash drove LUNA to become almost worthless, causing the need for a relaunch – the birth of LUNA 2.0.
Off the graves of the original Terra Luna comes a fresh Terra Luna, a deal to rebrand the Terra blockchain and mend what is left of the Terra community. But what precisely is it, and what strategy are LUNA 2.0 developers taking to guarantee the same mistakes won’t take place?
In this article, we take a view of LUNA 2.0, how it came about, and what really Terraform Labs and Do Kwon are striving to do with the recent Terra blockchain and LUNA cryptocurrency.
What is LUNA 2.0?
LUNA 2.0, officially cited as LUNA, is the native token of the new Terra blockchain that was created as a comeback to the debug of UST, the crash of the initial LUNA, and the stopping of the original Terra blockchain. The new chain is now Terra Classic, while the native coin is presently Luna Classic (LUNC).
In line with Terra’s official documentation, the rebrand was scheduled due to a community governance proposal. Incline toward the original blockchain, the recent Terra is built on Cosmos. However, noticeably minus from the Luna 2.0 blockchain are stablecoins.
During the time of writing this article, multiple exchanges are offering LUNA trading, involving Binance, Gate.io, KuCoin, Huobi Global, and By bit.
The team behind the recent Terra started up to airdrop new LUNA tokens to users of the first blockchain on May 28 together with the blockchain’s relaunch.
One billion coins were minted at the beginning of the chain, 30% of which belonged to a community pool for staked governance and originators. The other 70% is present in the cycle of being airdropped among the Terra community. The analysis of exactly how this airdrop is being allocated can be revealed in Terra’s official documentation.
What about LUNA 1.0?
As once cited, the original Terra blockchain has been rebranded to Terra Classic, while its native LUNA token has been relisted to LUNC. Terra Classic has been picked up where LUNA left off and will continue to run, though it remains to be detected if the decision on the blockchain will have any official interest or be a purely community-driven effort.
What’s next for Terra and LUNA 2.0?
Terraform Labs and Do Kwon have the means to go to get back the confidence of investors in the Terra ecosystem. Paying back those affected by the UST debug and LUNA crash is a step in a good direction.
Terraform Labs will moreover be burning 11% of the UST supply after a successful governance vote. The firm is also in communication with South Korean exchanges to have the recent LUNA listed – LUNC, though it remains to be seen how triumphant their endeavours will be.
Terraform Labs and CEO Do Kwon are now being examined after allegations by investors that Kwon was operating a Ponzi scheme. In addition, South Korea has restored a special investigation unit, ominously called ‘The Grim Reapers,’ to interrogate Kwon, fellow co-founder Shin Hyun-Seong, and the larger Terraform Labs, team.