The vote on the Terra Recovery Plan (LUNA) plan ended on Wednesday! Unsurprisingly, Do Kwon’s “revival plan” was largely supported. As a result, LUNA 2.0 will be released on May 27th. Terraform Labs has stated its aim to create a wholly new Terra blockchain by rejecting the hard fork scenario.
Towards a “genesis” Luna blockchain
On Wednesday, the Luna community approved “Proposition 1623.” More than 65 percent of voters supported the recovery plan, over 21 percent abstained, and more than 13 percent voted against it with a veto. It is worth noting that the veto would have been invoked at a 33% threshold.
Terra’s recovery strategy was warmly praised, however, the outcome of the referendum remained questionable. Despite the fact that Do Kwon’s rescue plan was presented to a vote this week, it has undergone significant changes. Among the changes that have happened – and which have not failed to cause uncertainty in the community – is the removal of the fork option. As an example, consider ” Luna genesis “. In other words, to a totally new Luna 2.0 with no ties to the fallen blockchain.
Many challenges to overcome
Terraform Labs’ most difficult step in saving Terra was undoubtedly approving the recovery plan. Following the collapse of Terra USD and LUNA, there is no guarantee regarding the smooth establishment of a new blockchain.
Some analysts are already pointing fingers at the different technological challenges Terra will encounter. Among the concerns raised are those about the future of active DApps on Terra Classic. When the fork scenario was chosen, these applications would be an essential element of the new ecosystem.
Today, developers must choose between preserving their program on Terra Classic (which is in difficulty) and beginning again on Luna 2.0. Worse, the new blockchain will be unable to enable DApps throughout the code integration phase of development. No one would dare to predict on the length of this procedure today.
Trust crumbles and controversies swell
In addition to the technological challenges that Terra faces, restoring the trust of its users will be difficult. If the decoupling of the UST had already surpassed expectations and caused anxiety, the revision of the recovery plan in the middle of the vote has turned the “Terra Gate” into a burlesque comic.
That is not all. The really good performance of the vote is being questioned. In response, @FatManTerra, a close watcher of the Terra ecosystem, addressed Terraform Labs with the following words: “It’s not technically a fork, but that’s beside the point. Why did you manipulate the governance vote to get it through? Why not have organized a real vote? And why are you forcing manufacturers to support it when they don’t want it? “.
The Luna Foundation’s recent acquisition of 221 million LUNAs is one of the justifications supporting these charges. These assets were subsequently delivered to validators on May 12, only days before the election. This operation would have given the group a majority of the governance votes, ensuring the proposal’s adoption.
It is now difficult to tell whether this idea is correct or whether the validators voted freely. Nonetheless, it reflects the environment of mistrust that exists towards Terra.
The “Armageddon” Protocol
As if that wasn’t enough, two Do Kwon videos have just emerged, making LUNA investors wince. In them, Terra’s founder mentions the presence of a “kill switch” or fatal button. Do Kwon also discusses the “Armageddon protocol,” a self-destructive project, and declares:
“ We have a kind of… something called Armageddon protocol in the company. What the Armageddon protocol is is a fatal click. As soon as we feel that we are no longer able to best serve the community, we pull the trigger and within 24 hours we are gone. We burn all our assets, we cut all our ties, and it’s over. So it’s just in case things move a little faster than we expect .”
This comment, to say the least, revives proponents of the view that Terra was doomed to fail.
Anyway, while there is little hope left, it will be interesting to see how Terra’s “revival plan” develops over the next several weeks and months. Is there a future for LUNA 2.0? Are the investors willing to put their money into the project? Nothing is more uncertain than business to come.
According to reports, 50 billion tokens had been destroyed as of this weekend. Do Kwon did, however, share the address of the burn wallet, where Luna holders—nicknamed LUNAtics—can drop their cryptocurrency in a digital black hole, never to be seen again.
Changpeng Zhao, CEO of the cryptocurrency exchange Binance, which invested in Terraform Labs, stated that his company purchased $3 million of Luna, which increased to a peak value of $1.6 billion.
The old blockchain will be known as Terra Classic (LUNC), and the new blockchain will be known as Terra (LUNA), according to the company’s tweet. The Luna token is new and should not be confused with the previous one with the same name (confusing, I know.)
Despite the recent price decline, analysts appear to think that LUNA has what it takes to make a return. Most experts that use technical analysis anticipate that LUNA will return to $1 in 2022.
Airdrops may be used by new protocols in the Terra ecosystem to reward committed users who are staking their Luna tokens. Airdrops are frequently utilized as a marketing tactic in the Terra ecosystem to generate awareness of certain protocols.
As time of writing, it seems that Do Kwon is not yet in jail. For more information follow this twitter handle. It’s releasing daily information if Do Kwon is in jail yet or not.
