While the official Governance voting will start on 18th of May. In a preliminary vote, the Terra community voted against founder Do Kwon’s Terra Ecosystem revival plan 2 to split the Terra chain into a new chain without the algorithmic stablecoin as a way to bring the Terra project back to life.
The Terra community agrees with Binance CEO Changpeng Zhao that burning will be the best choice and forking does not add value to the new fork. People are mad at the Terra team because they didn’t listen to their community and said they would help whales before small investors.
The proposal is mostly about how to “save” the Terra ecosystem and the people who live there. The old chain will be called Terra Classic (Luna Classic – LUNC) if the plan goes through. But the new chain will be called Terra (LUNA). There will be an airdrop of new LUNA tokens for Luna Classic stakeholders, Luna Classic holders, UST holders, and Terra Classic app developers who make important apps.
Furthermore, when the Terra Core fork starts, the oracle, treasury, and market modules will be taken out. On May 21, validators will be able to get the launch instructions for the network.
The Terra community wants Terraform Labs to give small UST holders their money back. Vitalik Buterin, CZ, and Justin Sun have all backed a plan that has become popular in the community.
Last week, the stablecoin TerraUSD (UST) lost its peg to the US dollar. This had a chain reaction that nearly wiped out the related token Luna. Because of how they worked together, there was a huge increase in the supply of Luna, which caused the price to drop to almost nothing. In the middle of the mess, Terraform Labs’ CEO Do Kwon suggested a revival plan to fork terra in order to save it but it was blatantly rejected by the community so he came up with the updated revival plan 2 to save Terra.
In 2018, Binance put $3 million into the Terra ecosystem, and in return, it got 15 million LUNA tokens. Binance CEO Zhao pointed out that when LUNA hit all-time highs, that investment reached a staggering $1.6 billion and is now worth just under $2400.