Terra developers to launch a new network instead of conducting a hard fork

Representatives of Terra said that the project’s “revival plan” does not involve a fork of the existing network, but the creation of a new one.

1/ Recently, a few community members (including some from TFL) have referred to the proposed new blockchain in Prop 1623 as a “fork” as opposed to a genesis chain.

Note: The revival plan is not proposing a “fork” of the existing chain, but rather the creation of a new one 🧵.

— Terra 🌍 Powered by LUNA 🌕 (@terra_money) May 23, 2022

They noted that in a classic fork the new network inherits the history of the original, but this will not be the case with Terra 2.0.

«If proposal 1623 is adopted, a new blockchain (Terra) will emerge, starting from the zero genesis block, which will not share any history with Terra Classic», — the team said.

In this context, applications or assets from the old network will need to migrate to the new one — they will not appear there automatically. According to project representatives, developers of most popular dapps, including Prism, Stader, RandomEarth and OnePlanet, are ready to migrate.

Co-founder Do Kwon, advocating a hard fork, called it “a chance to revive the project from the ashes”. In the community, the idea was met with a negative reception.

As of writing, validators were supporting the emergence of the new blockchain with roughly two-thirds of the votes.

During the vote, Kwon made changes to the initial proposal, revising some parameters of the new network’s token distribution.

Because of the Terra collapse, Hashed, a blockchain company based in South Korea, lost $3.5 billion. Authorities counted around 280,000 investors harmed by the devalued project assets and established an inter-agency task force to investigate the incident, previously nicknamed the “grim reapers”.

The non-profit Luna Foundation Guard (LFG) depleted its reserve by $3.2 billion over several days in May in an attempt to restore the dollar peg of the algorithmic stablecoin TerraUSD (UST).

According to KBS, the South Korean police are taking steps to freeze assets tied to the LFG. Law enforcement has asked local cryptocurrency exchanges to block withdrawals of any organisation’s funds. Police explained the measures were prompted by suspicions that stolen assets had been moved into the LFG.

Bill Ackman, the CEO and founder of Pershing Square Capital Management, called Terra a crypto pyramid.