If there’s one thing we can learn from crypto projects, it will be perseverance. Terra 2.0 will officially launch today on a new fork on the Terra blockchain. So far, the Luna(tic) roller coaster of emotions has taken us down to the bottom of the ocean. But, the Do Kwon expects everybody to remember that all of us make mistakes. Basically, the new fork will make everyone forget how much capital they lost due to gross negligence and incompetence. Moreover, Terra 2.0 will undo the hundreds of billions of dollars in damages and make crypto great again. Luna, will once again shoot to the moon according to the marketing department working at Terraform Labs. So, look deep into your heart, forget about lost capital and throw away all materialistic tendencies, forgive Terra, because they promise to get it right this time!
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Terra 2.0
Having unleashed all sarcasm in the introduction, let’s see what Terraform Labs is cooking this time. First things first, Terra 2.0 is a new blockchain that will launch today. Essentially, Terra 2.0 is a fork that will entirely replace the previous blockchain. And no project is complete without a hasty and premature initial coin offering.
Speaking of which, the blockchain will issue a new LUNA token and ditch UST for good. With that, Terra will airdrop LUNA to the current holders.
By the looks of it, the problem all along has been the algorithmic stablecoin UST and not mismanagement or even misleading marketing attempts. And so, this time it will all work out just fine (sarcasm).
Joking aside, Luna Foundation Guard (LFG) has stated the new blockchain to be revised. However, the key difference so far is getting rid of algorithmic stablecoin UST. And again, no one talked about bad management or incompetence or misleading information coming from Terra. After all, may be it was just a happy little accident!
LUNA Airdrop
Initially, the community made a vote to revive the Terra ecosystem and create a fork without UST. At this point, Terra 2.0 will go live on May 28, 2022 at 06:00 AM UTC. The first block of the new chain will be produced “following a supermajority of interconnected validators running simultaneously.”
In an effort to compensate for the losses, LUNA and UST holders will receive LUNA with an airdrop. According to Medium Post, eligible LUNA (Classic) and UST holders will gain LUNA following the genesis.
“The amount of LUNA you will be eligible to receive will be determined by the types of tokens you held on the Terra Classic chain, the time period that you held these tokens (based on Pre-Attack and Post-Attack snapshots), and the quantity of tokens held.”
What’s the Damage?
There is no other way to put it, Terra messed up. And, they messed up on so many levels too. First and foremost, the shocking failure of a large-scale algorithmic stablecoin made quite a dent in the crypto market as a whole. Primarily, LUNA and UST holders lost all their investment, but the market had a big crash following this event.
On the other hand, the crisis managed to fuel the fire of criticism towards cryptocurrencies as a whole. It gave way to brutal regulations against cryptocurrencies. Currently, lawmakers around the world are calling for swift action against crypto citing the UST and LUNA crash as an example.
In the meantime, South Korean authorities are pursuing legal action against Do Kwon and Terraform Labs. The team behind terra is now being charged with fraud and tax evasion in South Korea.
So far, the Terra 2.0 seems to be a lousy effort to make customers feel warm and fuzzy inside. The new and improved LUNA will likely spiral down into the abyss. The only hope for Terra was to pull a Facebook and completely change the name of their project. But, they were too busy trying to change the world with algorithmic stablecoins.
