Do Kwon's plan to rebirth the Terra blockchain gets approved

Quick Take

  • Do Kwon’s proposal to relaunch the Terra blockchain has passed.
  • In total, 65.5% of votes supported the proposal.

The governance vote on Do Kwon's proposal to relaunch the Terra blockchain and create LUNA 2.0 tokens has passed. This will result in the creation of a new blockchain that will airdrop tokens proportionally to those affected, following the sudden collapse of the TerraUSD (UST) algorithmic stablecoin.

In total, 65.5% of the total votes supported Kwon’s proposal. Only 13.2% who were opposed to the fork voted “no with veto.” Just over 20% of votes decided to abstain.

Following Terra's collapse, Terraform Labs CEO Do Kwon suggested the launch of a new network (initially describing it as a fork before that was corrected by Terraform Labs). The new blockchain will be called Terra whereas the current version of the chain will be renamed as Terra Classic.

Based on the details provided in the proposal, Terra 2.0 is scheduled to hit mainnet on Friday. After this launch, LUNA 2.0 tokens will be available for trading. These tokens will be airdropped to existing stakeholders of the network at a pre-decided percentage. Many of the tokens will be subject to vesting periods.

Moreover, the new Terra blockchain will exist without the UST token, which was originally its main purpose.

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