A few weeks after Terra’s blockchain fiasco that saw TerraUSD (UST) lose its peg to the U.S. dollar and its sister token, LUNA crashing, the team behind the project has now launched a new Terra network (a.k.a Terra 2.0) as part of its revival plan.
Pheonix-1 mainnet is now live and producing blocks – public node services, wallets and explorers should be going live shortly. pic.twitter.com/cpxiNKl6aX
— Do Kwon 🌕 (@stablekwon) May 28, 2022
Luna 2.0 Goes Live
Do Kwon, founder and CEO of Terraform Labs, announced the development via his Twitter handle in the early hours of Saturday. The Terra team noted that Luna 2.0 is a new blockchain and not a fork, hence, Decentralized Applications (Dapps) from the old chain, Luna Classic (LUNC) will need to relaunch on the new chain.
The development came a few weeks after Kwon proposed a revival plan for the collapsed Terra ecosystem, which is to launch a new Terra blockchain. The new network will exist without Terra’s algorithmic stablecoin. Majority of the Terra community representing 65.50% voted in support of the proposal.
According to the team, the new token will be airdropped to existing owners of Luna Classic and TerraUSD stablecoin. The distribution model includes 30% to its community pool, 35% to LUNA holders before implosion, 10% to pre-attack UST holders, 10% to post-attack LUNA holders, and 15% to post-attack UST holders.
A snapshot of user balances were taken before and after the crash to enable effective distribution of tokens, according to investor holdings.
Terra (LUNA) crashes 69.5% following second launch
The newly released Terra (LUNA) coin is already listed on certain exchanges, with many earlier announcing plans to support Luna 2.0 on their platforms in order to enable users to take part in the upcoming airdrop.
Following the new release, however, LUNA’s price has failed to impress. After trading close to $19 within hours of its release, the price of LUNA has dropped by approximately 70% .
At the time of writing, LUNA is currently trading at around $5.68, representing an 18% increase of the day. The newly launched asset has already amassed a $1 billion market capitalization.
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