The "Terra Ecosystem Revival Plan 2" proposal (Prop 1623), submitted by Terra founder Do Kwon, has been officially approved via community voting (surpassing the 50% threshold requirement).
Current voting data reveals that 81% of LUNA holders participated, with 66.51% (200 million) in favor, 21.3% abstaining, and 0.33% opposing. The total votes cast amounted to approximately 367 million, requiring 50% for passage—a threshold comfortably exceeded.
Here’s a breakdown of the 10 critical aspects of the Terra Revival Plan:
1. New Chain Creation (Not a Hard Fork)
- A new blockchain named Terra (LUNA) will be created, while the existing chain becomes Terra Classic (LUNC).
- The new chain won’t share historical data with Terra Classic and will exclude the algorithmic stablecoin UST.
2. Tokenomics & Airdrops
- Total supply: 1 billion new LUNA tokens.
- Inflation rate: 7% annually to incentivize network security.
Airdrops will target:
- Luna Classic stakers/holders.
- aUST (Anchor Protocol) holders.
- UST holders.
- Terra Classic developers.
👉 Learn more about token distribution
3. Initial Liquidity Calculation
- Community Pool (30%): 250 million tokens (20% for governance, 10% for devs).
- Pre-attack LUNA holders (35%): 6.77 million unlocked initially.
- Pre-attack aUST holders (10%): 30 million unlocked.
- Post-attack LUNA (10%) & UST (15%) holders: 30 million + 45 million unlocked.
- Total initial liquidity: ~361.77 million LUNA.
4. Snapshot & Genesis Block
- Snapshot at Terra Classic block 7,790,000 (~May 26, 16:20 UTC).
- Recommendation: Hold LUNA/UST in Terra wallets to qualify for airdrops.
5. Exclusion of TFL Wallets
- Terraform Labs (TFL) wallets were removed from airdrop whitelists to ensure community-owned governance.
6. LFG’s Role & UST Compensation
- The Luna Foundation Guard (LFG) holds 18.5 billion UST and 23 billion LUNA but will receive only 25 million new tokens.
- No concrete UST reimbursement plan has been finalized yet.
7. UST Burn Proposals (Prop 1188 & 1747)
- Attempts to burn excess UST and reallocate airdrops faced technical delays.
- Prop 1747’s approval remains uncertain (<50% votes currently).
8. DApp Migration
- Projects like PRISM, Stader Labs, and RandomEarth will migrate to the new chain.
- Terra Classic will remain operational but without shared DApps/assets.
9. Warning Against Token Burns
- Do Kwon clarified that burning LUNA tokens (sending to dead addresses) does not benefit the revival plan.
10. Key Takeaway: Diversify Investments
- The UST crash underscores the need for cautious, diversified portfolios—avoid overexposure to high-yield schemes.
FAQs
Q1: Will Terra Classic (LUNC) still be tradable?
A: Yes, exchanges may continue supporting LUNC, but its utility will diminish post-revival.
Q2: How do I claim my LUNA airdrop?
A: Hold LUNA/UST in non-custodial wallets (e.g., Terra Station) during the snapshot.
Q3: What happens to UST holders?
A: They’ll receive 15% of new LUNA, but LFG’s reimbursement plan is pending.
👉 Stay updated on Terra’s progress
This plan marks a pivotal step toward stabilizing Terra’s ecosystem—prioritizing decentralization, security, and community trust.