- LUNA price plummets nearly 38% despite a 200% increase in trade volume.
- Do Kwon, CEO of Terraform Labs, has written a proposal to fork LUNA to a new chain with a cap of 1 billion coins.
- Binance CEO CZ believes Do Kwon’s plan to save LUNA will not work as forking does not add value to the new fork.
- Is it a good time to buy Terra’s LUNA before the upcoming hard fork?
Update: Do Kwon, CEO of Terraform Labs, is moving forward with his "Terra Ecosystem Revival Plan 2." Following last week's collapse of the Terra stablecoin peg to US dollars and the subsequent demise of its native token LUNA, which plummeted from $87.68 to the current $0.0002 levels, Kwon announced a collaborative plan of action with the Terra community. Do Kwon's post on the Terra Agora forum releases a specific short-term timeline for this recovery plan.
Within this action, Terraform Labs will hold a governance vote on Wednesday, May 18, on whether to pass a hard fork for Terra, similar to the famous DAO hack the Ethereum network experienced in 2016, which split blockchain networks into two tokens, Ethereum (ETH) and Ethereum Classic (ETC). In this case, the current worthless LUNA tokens will get converted to Luna Classic (LUNC) once the fork takes place. Holders, stakers, and developers of LUNC will get rewarded with brand new LUNA tokens that will be capped at 1 billion. If everything goes to the Terraform Labs CEO plan, the new LUNA network will be launched on May 27th.
Do Kwon’s proposal to fork Terra’s LUNA to a new chain has received criticism from Binance CEO and cryptocurrency proponents. The Luna Foundation Guard has spent $3 billion stabilizing TerraUSD’s peg, however, UST has failed to recover.
Terra’s LUNA struggles to recover despite forking plan
The Luna Foundation Guard has spent billions of dollars reinstating TerraUSD’s (UST) peg. However, UST price is struggling to make a comeback. At the time of writing, UST is priced at $0.082, 91.8% lower than its $1 peg.
Do Kwon, the CEO of Terraform Labs, came up with a recovery plan for Terra’s tokens. The Luna Foundation Guard Council proposed forking LUNA to a new chain, using a snapshot from before the attack on the blockchain.
Also read: Luna Foundation Guard (LFG) sold 46,876 BTC amid Terra's death spiral
The recovery plan proposes a cap of 1 billion coins, where 900 million tokens of the new chain are set aside to be returned to LUNA and UST holders from before the de-pegging event and chain hold, and the last 100 million tranche is to be staked at the network genesis state.
5/ There are multiple proposals on Agora on the best steps to move forward for the community – after having read many of them, I’ve put down my thoughts of what I think the best steps are: https://t.co/pJNXATzllz
— Do Kwon (@stablekwon) May 13, 2022