Engineers say that the number of tokens that can be used on the new blockchain will be just over 116 million.
After terraUSD (UST) went down earlier this month, a snapshot of the Terra blockchain is set to happen later this week. This is in preparation for the release of “Terra 2.0,” which is a “rebirth” of the Terra ecosystem.
The plan to bring the dead back to life is now going forward after a vote by network validators on Wednesday showed that 65 percent of them agreed with it.
So that people don’t sell their LUNA too quickly, investors who had more than 10,000 LUNA before UST went bankrupt will get new tokens on a regular basis. Over 30% of their tokens would be unlocked at once, and the other 70% would be given out over the next two years. After six months, these people will be given new tokens.
According to the resurrection plan, wallets with more than 1 million LUNA or UST before UST was depegged would have to wait more than a year before getting any tokens, and then they would have to wait another four years before they could spend them.
Through a “snapshot,” which is a record of how a blockchain looked at a certain point in time, Terra will be able to give the new LUNA tokens to the people who own the old ones. In theory, this would allow current holders to get back some of the value of their investments that they lost, and it would also encourage people to use the new blockchain.
The snapshot for Terra 2.0 is set for May 26. “Block timings show that the 7,790,000th block after a snapshot could happen as early as May 26, 2022, at 16:20:00 UTC,” Terra developers said on Tuesday.
“The supply at Genesis is much lower than anyone expected. It’s closer to 116.7M and will grow to 182M in a year,” they said, alluding to fears in the community about a large supply of luna.
How the snapshot strategy came to be
Early in May, UST stopped being tied to the US dollar, and in the weeks that followed, it fell to as low as 7 cents. This caused the price of its linked luna (LUNA) tokens to drop 99.7%, and over $28 billion was withdrawn from Terra-based decentralized finance (DeFi) applications.
This reportedly caused LUNA investors and dealers to lose faith, as well as anger in Korea, where Terra had a lot of fans and losses of billions of dollars for some crypto funds.
In the days after the collapse, Terra’s outspoken creator, Do Kwon, suggested a “fork” of the blockchain and an “airdrop” to UST investors.
The goal of the project is to bring people back together and restore their faith in the Terra ecosystem.
The word “fork” refers to the creation of a new blockchain, where data from the older blockchain takes priority over data from the newer blockchain. Developers of Terra, on the other hand, have said that “Terra 2.0” would be an entirely new project that wouldn’t use any data from the current chain.
Even though Terra’s network validators decided to go ahead with the resurrection plan, it was put into action even though a preliminary online poll on a hard fork proposal showed that few community members supported it.
Reports say that in a previous online survey, over 6,220 people voted against the change, with “no fork” being the most popular choice.
In the last 24 hours, the price of LUNA has gone up by almost 6.2%.