{"id":61553,"date":"2022-05-17T10:32:22","date_gmt":"2022-05-17T07:32:22","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=61553"},"modified":"2025-09-05T12:51:15","modified_gmt":"2025-09-05T09:51:15","slug":"terraform-labs-co-founder-proposes-terra-hard-fork-to-revive-terra","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/terraform-labs-co-founder-proposes-terra-hard-fork-to-revive-terra\/","title":{"rendered":"Terraform Labs co-founder proposes Terra hard fork to revive Terra"},"content":{"rendered":"<p>Terraform Labs co-founder Do Kwon proposed a Terra hard fork creating a new network and an airdrop. He called it &quot;a chance to resurrect the project from the ashes&quot;.<\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">2\/ It has been inspiring to partake in the dynamic discourse regarding the best next steps for Terra. Taking feedback from the community and thoughtful proposals, I would like to suggest the following for the path forward.<a href=\"https:\/\/t.co\/E13VI8bkLh\">https:\/\/t.co\/E13VI8bkLh<\/a><\/p>\n<p>A thread on our reasoning:<\/p>\n<p>\u2014 Do Kwon \ud83c\udf15 (@stablekwon) <a href=\"https:\/\/twitter.com\/stablekwon\/status\/1526258275506786304?ref_src=twsrc%5Etfw\">May 16, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The new network is expected to keep the Terra name with the LUNA token. The original blockchain will become Terra Classic with Luna Classic (LUNC) accordingly.<\/p>\n<p>The project will continue development without a new algorithmic stablecoin. Kwon called the UST peg to the dollar a &quot;moment of the hack&quot; <a href=\"https:\/\/forklog.com\/en\/news\/what-is-a-dao-decentralised-autonomous-organisation\">DAO<\/a> Terra.<\/p>\n<p>The total LUNA supply will be 1 billion tokens, with a staking reward target (inflation) of 7%.<\/p>\n<p>For token distribution two snapshots will be taken \u2014 on May 7 (&quot;Before the attack&quot;) and on May 17 (&quot;Launch&quot;). Shares for airdrop participants will be:<\/p>\n<ul class=\"wp-block-list\">\n<li>35% \u2014 community pool, controlled through staking;<\/li>\n<li>5% \u2014 developers;<\/li>\n<li>35% \u2014 all Luna-related users by the snapshot &quot;Before the attack&quot; (Terraform does not participate);<\/li>\n<li>10% \u2014 Luna holders at the moment of &quot;Launch&quot;;<\/li>\n<li>25% \u2014 UST holders by the snapshot &quot;Launch&quot;.<\/li>\n<\/ul>\n<p>For several categories a <span data-descr=\"vesting schedule\" class=\"old_tooltip\">vesting<\/span> is planned for most tokens.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&quot;We believe that this distribution, in addition to LFG&#8217;s efforts to compensate UST holders, best serves the varying interests and time preferences of each stakeholder group. Most importantly, this creates a viable path to revive the Terra ecosystem&quot;,<\/p>\n<p>\u2014 Do Kwon \ud83c\udf15 (@stablekwon) <a href=\"https:\/\/twitter.com\/stablekwon\/status\/1526258286751731714?ref_src=twsrc%5Etfw\">May 16, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The new network, he said, is developer-focused.<\/p>\n<p>Voting on the proposal will take place on May 18; if approved, the launch is scheduled for May 27.<\/p>\n<p>On May 8, UST <a href=\"https:\/\/forklog.io\/ctejblkoin-ust-kratkovremenno-utratil-privyazku-k-dollaru-ssha-na-fone-ottoka-aktivov-iz-anchor\/\">lost its peg to the US dollar<\/a>. This came amid a withdrawal of assets from the Anchor protocol as the deposit yield fell to 17.87%.<\/p>\n<p>On May 10, the asset&#8217;s price <a href=\"https:\/\/forklog.io\/stejblkoin-ust-utratil-privyazku-k-dollaru-ssha-na-fone-obvala-kriptorynka\/\">fell below $0.62<\/a>. The decline continued on May 11, after which the UST-backed cryptocurrency <a href=\"https:\/\/forklog.io\/blackrock-i-citadel-zayavili-o-neprichastnosti-k-krahu-ust-tsena-luna-obvalilas-do-0-3\/\">LUNA collapsed to $0.3<\/a>. At the time of writing, the latter stood at about $0.00018, and the stablecoin at around $0.09 (<a href=\"https:\/\/www.coingecko.com\/ru\">CoinGecko<\/a>).<\/p>\n<p>The head of Terraform Labs had already <a href=\"https:\/\/forklog.com\/en\/news\/terraform-labs-ceo-do-kwon-proposes-plan-to-settle-ust-and-luna-fallout\">put forward plans to resolve the situation<\/a> for those affected by the crash of assets.<\/p>\n<p>In April, Binance CEO Changpeng Zhao said that <a href=\"https:\/\/forklog.com\/en\/news\/changpeng-zhao-questions-terra-hard-fork-viability\">the Terra hard fork would not work<\/a>, because the new network would have no value. Previously, he <a href=\"https:\/\/forklog.com\/en\/news\/changpeng-zhao-criticises-terra-teams-actions\">criticised the project team&#8217;s actions<\/a> in the wake of the crash.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Terraform Labs co-founder Do Kwon proposed a Terra hard fork creating a new network and an airdrop. He called it &#8220;a chance to resurrect the project from the ashes&#8221;.<\/p>\n","protected":false},"author":1,"featured_media":61554,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1158,268,852],"class_list":["post-61553","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-airdrops","tag-hardfork","tag-terra"],"aioseo_notices":[],"amp_enabled":true,"views":"40","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/61553","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=61553"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/61553\/revisions"}],"predecessor-version":[{"id":61555,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/61553\/revisions\/61555"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/61554"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=61553"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=61553"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=61553"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}