The crypto investors at large faced an unexpected crypto market crash in the last few weeks, following the Terra LUNA crash. Following the LUNA token’s de-pegging from its $1 parity, everything came crashing down, leaving many investors with nothing as LUNA dropped to $0.
The Terra community has now voted and accepted the proposal for LUNA 2.0 – that essentially means the introduction of a fork of a new chain but with several changes. The official tweet from Terra said:
A quick flashback
On May 9, 2022, after a huge dump of the UST coins into the market by a whale, the algorithmic stablecoin that is built on top of the Terra ecosystem, lost its $1 peg. The availability of UST tokens in excess amount led the crypto investors to sell off even more UST tokens and within a few days, the token was trading around $0.30, which is significant 70% lower than its usual value.
The algorithm functions in a way where if there is an excess amount of UST tokens that threatens the $1 peg, LUNA tokens are burned to keep the price at a constant $1 and vice versa. Since the unknown whale sold off a huge amount of the UST tokens, there were more UST and Terra LUNA tokens in supply than there were traders to consume such a volume. However, the selling pressure turned out to be huge, and UST never came close to its $1 peg.
Crypto Exchanges supporting Terra Network Airdrop
As soon as the news of the new Terra LUNA 2.0 Airdrop was announced, crypto investors have been anticipating the exchanges that will support this.
LUNA & UST Migration and New LUNA Airdrop will be supported by Binance, CoinDCX, Huobi, Kucoin, Bitrue, FTX, Bitfinex, GateIO and Bybit.
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How will the LUNA 2.0 Airdrop be distributed?
One of the hottest topics in the crypto ecosystem is the LUNA 2.0 token airdrop and how it will be distributed to holders of LUNC tokens. According to the Terra website, the Community pool will be receiving 30%, Pre-attack LUNA holders 35%, Pre-attack aUST holders 10%, Post-attack LUNA holders 10% and Post-attack UST holders will get 15%.
In this scenario, a Pre-attack is defined as the holders or traders of LUNA or UST who held these tokens before the Terra network collapse took place. Post Attack holder refers to those traders to have bought LUNA or UST during the de-pegging period or have grabbed a few tokens upon the release of the Terra LUNA 2.0 Airdrop news.
In addition to the airdropped tokens, the wallet of Terraform Labs (TFL) will be removed from the whitelist for the airdrop, as it is intended to make “Terra a fully community-owned chain.”
For Terra ecosystem tokens, certain pre-determined criteria will set an initial unlock date as well as a vesting schedule.
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What is Terra 2.0?
Terra 2.0, is the revamped version of Terra coin. The company CEO believes that validating all invalid blocks and transactions on the blockchain network will make the coin boom once again. This plan will be executed by a hard fork. A hard fork will ensure that Terra is not linked to the current Terra blockchain, instead will be linked to a new blockchain, then the Terra token can be switched to Terra Classic, the stable coin by Terraform labs that are not algorithmically designed.
The new Terra network is set to inherit the deep developer pool and passionate LUNAtic community that has contributed to making Terra Classic the 2nd largest smart contract blockchain behind Ethereum. In addition to the community members, many Terra Classic projects are transitioning to the new chain including Astroport, Prism, RandomEarth, Spectrum, Nebula and many others.
According to the blog that Terra CEO, Do Kwon shared, with the interoperability of Terra in mind, this LUNA ecosystem will be the gateway to the wider Cosmos ecosystem and beyond.