At Wednesday (18) the official vote for the implementation of the hard fork on the Terra network (LUNA) began, creating “Terra 2.0”. The move aims to recover the blockchain after the collapse of the TerraUSD (UST) stablecoin and the LUNA cryptocurrency.
While voting is already taking place – and will end in three days – Terraform Labs CEO Do Kwon has made some changes to the proposal. According to him, the changes aim to “accommodate community feedback”.
“Some token allocation details were modified in the proposal to accommodate community feedback. The body of the proposal has also been edited to reflect changes in the amendment. If you’ve already voted and you don’t agree with the changes, vote “No”. You have couple more days to do it,” wrote Do Kwon.
According to Do Kwon, the proposal seeks to create a new blockchain, but without the stablecoin UST. The new network will inherit the name Terra, while the old one will be named “Terra Classic”, with the LUNA Classic (LUNC) token.
Changes in the proposal for Terra 2.0
As reported by Do Kwon, the first change reduces the distribution of LUNA 2.0 tokens to holders of the UST stablecoin who had their tokens staking on the DeFi Anchor protocol when the depeg occurred (loss of 1:1 parity with the dollar).
In accordance with the amendment, the distribution share was reduced from 20% to 15%.
“This is to ensure that the depeg-related allocation is at the same level as the stakeholder’s original allocation (pre-attack Luna). The 5% saved goes to the community pool,” she explained.
Second, Do Kwon changed the distribution schedule for pre-attack Luna holders. In this case, he has increased the initial unlocks of LUNA 2.0 token allocations from 15% to 30% for holders with a snapshot balance of 10,000 Luna or less. In the meantime, the remaining 70% will be blocked for a period of two years.
“This is to ensure that small Luna holders have similar initial liquidity profiles. This would cover 99.81% of Luna wallets, representing just 6.45% of Luna’s total in the pre-attack snapshot,” he stated.
As you might imagine, the changes implemented in the middle of the vote generated debates in the community. For the Earth analyst known as FatMan, the changes should come with a new vote.
“How can you make significant changes to a proposal *mid-vote* when most people have already voted (on the original document)?” asked FatMan.
Do Kwon’s proposal to promote a hard fork on the Terra chain was widely rejected by the community in an unofficial poll.
But now, with voting underway, a majority of votes are in favor of the fork. At the time of writing, a large majority of votes (80.26%) are in favor of the fork.
- Votes for Earth 2.0. Source