Terra's new blockchain will launch Saturday, followed by an airdrop of new Luna tokens (LUNA) to users as part of a broader plan to revitalize the Terra ecosystem, developers confirmed Friday.
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"The community has been working around the clock to coordinate the launch of the new blockchain," Terra developers shared in a tweet Friday morning. "Subject to potential changes, we expect Terra to go live at approximately 06:00 UTC on May 28, 2022."
A snapshot of the new blockchain, currently referred to as "Terra 2.0," took place earlier this week following a vote among the network's validators that resulted in a 65% approval rate.
Holders of LUNA and terraUSD (UST), a stablecoin pegged to the U.S. dollar, are eligible to receive new LUNA tokens based on their existing holdings. This would theoretically allow former holders to recover some of their lost investment value while incentivizing them to use the new blockchain.
For example, wallets that held more than 1 million LUNA or USTs before USTs were decoupled from the U.S. dollar would have to wait more than a year before receiving tokens and then go through a four-year consolidation period. New tokens are automatically distributed to the wallets of existing users.
Popular applications on the current blockchain, which will continue as "Terra Classic" after Terra 2.0 launches, are expected to migrate to the new blockchain.
Separately, a vote was held Thursday on Terra's Proposition 1747 to burn 1.388 billion UST. The move reduced UST supply by about 11% from the current 11.28 billion.
Terra's UST tokens were overrun by a bank earlier this month, causing the token price to drop to $0.07. This led to a loss of investor confidence in the Terra ecosystem. LUNA token prices fell nearly 100% and Terra-based decentralized financial applications (DeFi) lost more than $28 billion in blockchain value.
This article was translated by Marina Lammertyn.