Terra 2.0 Launches Without Algorithm Stablecoin

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Terra 2.0 Launches Without Algorithm Stablecoin

In Brief

  • Terra 2.0 has launched, with a new blockchain and new LUNA tokens.

  • Some applications have already migrated to the new chain.

  • Before the launch, the governance voted to change the name of the original network to "Terra Classic," and the new Terra chain exists without an algorithmic stablecoin.

  • The airdrop is expected to be claimed shortly after launch.

The new Terra blockchain went live today at 6 am UTC. This is according to Terraform Labs CEO Do Kwon. The new chain is an attempt to bring the Terra ecosystem back to life, after the UST algorithmic stablecoin crashed a few weeks ago. The value of Terra's tokens plunged by $40 billion.

After the stablecoin's value plummeted, the development firm behind Terra, Terraform Labs, proposed a new blockchain. Kwon quickly deployed a new chain once the proposal was approved. Now, applications like Astroport, Prism, RandomEarth, Spectrum, Nebula, Terraswap, Edge Protocol have all migrated to the new chain.

The most exciting feature of today's launch is that all Classic chain tokens (which were previously called Terra) will receive a lot of new LUNA coins. This happened as part of an airdrop, with 700 million of the total 2 billion LUNA to be distributed accordingly.

The exact number of coins which you receive depends on whether or not you held your tokens before or after the U.S. dollar peg was dropped, according to an announcement from the team  https://medium.com/luna-series-2-0/luna-series

The airdrop, which will happen shortly after launch, can be claimed through centralized exchanges or Terra's website. Some of the exchanges involved are Binance, Huobi, Kraken, Bitfinex, Bitrue, Kucoin and Bybit. Not all of the tokens can be claimed right away though; only 30% of the initial supply can be claimed immediately. The remaining 70% has been staked with validators to ensure network security. These tokens will vest over the course of two years.

70% of the LUNA from the Terra 2.0 chain will be divided among the two investor categories. The remaining 30% will go into Terra's community pool. This is a treasury fund that is controlled by Terra governance in order to finance development activities. Out of the total pool amount, 30 million have been assigned for developers who have chosen to stay and rebuild on the new Terra chain.

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