Do Kwon Wants to Fork LUNA's Blockchain to Make Terra Classic
Do Kwon intends to use the LUNA blockchain and fork the blockchain to create a new coin.
There is a plan to branch from the existing chain and call it "Terra Classic." The new chain would do away with UST stablecoin.
Terra users will soon be able to vote on whether or not to fork the blockchain.
The man's most recent proposal is to split the blockchain into two in a similar manner to Ethereum's fork from Ethereum Classic. This comes after his previous plan to redistribute tokens and abandon UST was met with opposition on the platform.
Today, a group of blockchain purists proposed keeping the current collapsed blockchain and relaunching it as Luna Classic (LUNC).
The new chain will airdrop 1 billion Luna tokens between developers, UST holders, and those who hold LUNA or its derivative projects. The redistribution will include vesting schedules and token lockups for most of the LUNA.
While Kwon's latest proposal is similar to the one proposed on Friday, May 13th, there are some key differences. Most notably, there is no UST stablecoin. Said Kwon: "Terra is more than $UST."
In a tweet thread, Kwon announced that the decision to initiate a hardfork after a consensus could not be reached was due to competing interests from varied stakeholders. With no consensus in place, developers, UST and LUNA holders can choose to start fresh or continue working with the collapsed chain, which remains paused as the community decides how to move forward.
1/ Terra is more than $UST— Do Kwon 🌕 (@stablekwon) May 16, 2022
The price of LUNA went down as the price of Terra went up, because of the high interest rate. But when the interest rate on Terra began to fall, investors began to cash out. This caused both Terra and LUNA to plummet.
Kwon's proposal to go back in time is reminiscent of the Ethereum community splitting after a smart contract hack on "The DAO" in 2016.
The DAO was a digital decentralized autonomous organization, kind of like a venture capital fund built on the ethereum network. People could trade their Ethereum for DAO tokens, then use those tokens to invest in Ethereum projects. The DAO raised $150 million dollars in ethereum, which was a sizeable chunk of all the Ether being traded at the time.
Users of the Terra community can vote on a proposal from Kwon which will be voted on on May 27.