A supply of just over 116 million tokens will be available on the new network, developers say.
The “algorithmic stablecoin” Terra, whose collapse sparked a collapse of the entire cryptocurrency sector, is being relaunched as “terra 2.0” as a last-ditch effort to recover investor losses.
This week, it is expected that Terra will take a snapshot of its blockchain ahead of the launch of “Terra 2.0,” which is billed as a revival of the ecosystem after the implosion of terraUSD (UST) earlier this month.
65.50% of all voters supported the proposal to create a new Terra blockchain. Over 20% of voters abstained and 13.20% strongly opposed the proposal with a veto.
The original proposal was to “hard fork” the blockchain, but Terra later clarified that it was not the case. Instead, the Terra blockchain will be restarted. Making a new blockchain would let dApps migrate to the new chain instead of having to rework their projects.
TOKEN DISTRIBUTION
Millions of Luna tokens will be distributed as part of the plan with the hope that they will be worth something once the new blockchain is adopted.
In order to avoid immediate selling, individuals that held over 10,000 LUNA tokens prior to UST’s implosion will be provided with new tokens periodically. More than 30 percent of the tokens would be unlocked at first, and the remaining 70 percent would be released over two years. These holders will receive new tokens after six months.
Wallets that had more than 1 million LUNA or UST would have to wait more than a year to receive any tokens, with a four-year vesting period afterwards.