After weeks over controversy over the unraveling of his algorithmic stablecoin project, Terra Co-founder, Do Kwon, has put up a proposal to fork the Terra blockchain but without its algorithmic stablecoins namely $UST.
In the proposal published by Do Kwon on the Terra research forum, he proposes that the old chain to be called Terra Classic (token Luna Classic – $LUNC) and the new chain to be called Terra (token Luna – $LUNA).
In his plan 1,000,000,000 $LUNA for the new chain will be airdropped across the following groups:
- Luna Classic stakers
- Luna Classic holders
- Residual UST holders
- Essential app developers of Terra Classic
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SEE ALSO: $LUNA Crashes by 99% Raising Fears of a Network Takeover
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A big part of the plan is to incentivize developers to stay and build on the platform. Under Do Kwon’s proposal, developers will get an immediate emergency allocation of $LUNA tokens to fund runway as well as a pool of tokens earmarked to align the interests of the base layer with its builders.
Essential app developers committing to launch on Terra will receive:
- Emergency allocation (1% of total supply) immediately after network launch to provide for runway while they build out product. Commit to returning funds if product has not been launched in 1 year
- Alignment allocation (4% of total supply) to be vested to dev teams that ship product and show traction. Allocation to be determined by governance, rule set to be debated by community
According to Do Kwon, the Terra ecosystem and its community are worth preserving, pointing out the following growth factors that Terra had achieved before $UST lost its peg and became unsustainable:
- Terra’s app ecosystem contains hundreds of developers working on everything from DeFi to fungible labor markets, state-of-the-art infrastructure and community experience
- Terra Station has a large install base, with million+ users across the world
- Although distressed, strong brand recognition and a name that almost everyone in the world will have heard about
Hence, in the new plan, Terraform Labs (TFL), the organization under Do Kwon that spearheaded the Terra ecosystem wallet will be removed from the airdrop making Terra a fully community-owned chain.
The proposal will go live for voting on May 18, 2022.
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RECOMMENDED READING: EXPLAINER: How Algorithmic Stablecoins Like $UST Work
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