On May 26, "proposal 1623," by Terra illustrating plans to revive the collapsed Terra ecosystem, has passed and been supported by the community.

On May 16, Do Kwon, the founder of the Terraform Labs, proposed a plan to revive the Terra Ecosystem which included the creation of a new blockchain and issuing new LUNA tokens, after its stablecoin UST and cryptocurrency LUNA nosedived earlier this month, bringing down the crypto markets with them.

“Terra 2.0 is coming,” Terra’s official Twitter account tweeted on Wednesday. “With overwhelming support, the Terra ecosystem has voted to pass Proposal 1623, calling for the genesis of a new blockchain and the preservation of our community.”

The proposal will successfully make a new layer-1 Terra blockchain without its algorithmic stablecoin. The organization tweeted that the old blockchain will be called Terra Classic (LUNC) and the new blockchain will be called Terra (LUNA).

As per information from Terra Station, the proposition had 65%, or around 200 million votes, for the plan, while around 21%, or 54 million, declined, and around 13%, or 41 million, cast a ballot no. The votes are projected in light of the LUNA token proprietorship, with one vote for each token, not per customer.

Considering that it has passed its limit, the relaunch plan will be carried out on May 27.

According to the provisions of the proposal, Terra will airdrop tokens to local area individuals who never sold their old LUNA tokens or UST stablecoins amid the ecosystem’s downfall.

The wallet tied to Terraform Labs and Luna Foundation Guard will not be a part of the airdrop whitelist Terra wrote, "(This) will make Terra a fully community-owned chain." Terra said, "We believe this is an important step to empowering our ecosystem."

Joyashree Dey

CBW - External Analyst

INDIA