Terraform Labs co-founder Do Kwon amended his Terra blockchain hard-fork proposal. He said he revised several parameters of the new network’s token distribution “in light of the community’s input.”
On May 16, initiated a vote on the hard fork, calling it a “chance to resurrect the project from the ashes.” The plan envisages creating a new network with a LUNA token. The existing blockchain will be named Terra Classic with the Luna Classic (LUNC) cryptocurrency.
The first change reduces the distribution of LUNA tokens among UST holders whose assets were deposited in the Anchor protocol when the algorithmic stablecoin lost its peg to the U.S. dollar. Kwon cut their share from 20% to 15%. The saved tokens will be sent to the community pool.
Under the second adjustment, Kwon changed the vesting plan for participants in the “Pre-Attack” and “Launch” categories, and increased the share of tokens unlocked from the launch of the new network to 30%. The remaining 70% of LUNA will remain locked for a two-year period.
The Terra community criticized Kwon’s decision to amend the proposal mid-vote.
What the hell? How can you make significant amendments to a proposal *mid-vote* when most people have already voted (for the original document)? A new proposal in Terra Station should be made with a fresh vote. This is not cool. (No comment on the changes — just the execution.) https://t.co/SeFpc78Sab
— FatMan (@FatManTerra) May 20, 2022
“What the hell? How can you make significant amendments to a proposal in the middle of a vote when most people have already made their choice (in favor of the original document)? A new proposal on Terra Station should have been submitted through a new vote. This is not cool. (Not commenting on the changes — just the execution),” wrote an anonymous ecosystem analyst FatMan.
The Terra community did not back the idea of a hard fork in the preliminary vote. However, in the main process the proposal had already passed the quorum threshold.
“Yes” votes accounted for almost 80% of participants, “No with veto” — 17.64%. To veto the proposal, 33.4% of votes are required.
Earlier, Binance CEO Changpeng Zhao expressed doubts about the advisability of Terra’s hard fork.