Just as predicted, voting on the very centralised Terra community resulted in the creation of a new blockchain. This basically means that Terra blockchain will be copy, pasted and edited to remove certain entities that the community believes may be holding them back.
This vote means that a new chain that will be called terra, with governance coin called Luna will be formed. However, what we call Luna today, will become LUNC or Luna classic and the chain will be Terra classic.
What this means in essence is that both chains will continue to exist and the terra foundation will continue "managing" LUNC, in the same way Steemit now pretty much controls Steem blockchain.
The travails of Luna and terra have been documented and discussed on numerous platforms. The situation with Luna, UST "stable coin" and the failed algorithm that opened a path for a massive exploit that pretty much elaborated nearly $40 billion worth of assets is not a new story.
New Luna
So, what we know for sure is that there will be a new blockchain and it will in fact be named Terra. It will have a governance coin called Luna BUT, it will not have a stable coin....for now
The previous coin, will eventually be called LUNC or Luna classic and everybody that holds Luna now will receive Luna classic. There's no specific description about how to redeem the new Luna or convert your old LUNA to LUNC, so I reckon it will be automatic.
According to Terra's official Twitter, the community fork is supported by a couple of exchanges that includes Binance and a couple of others. So, it is very likely that if you currently hold Luna on an exchange, you will automatically receive the new Luna and see your old Luna converted to LUNC.
In any case, my advise to anyone currently holding Luna in an exchange is to contact the exchange's customer care and hear about how they intend to handle the situation. Hell, it is possible that your exchange might not even be aware of it and you'd be helping them out.
Airdrop thoughts
If you have spare time, you can read up the Github repository for more details about the airdrop. However, here's a summary of the Luna airdrop as depicted in this tweet;
● Community pool: 30%
● Pre-attack $LUNA holders: 35%
● Pre-attack aUST holders: 10%
● Post-attack $LUNA holders: 10%
● Post-attack $UST holders: 15%
What this means in essence is as follows;
Comunity Pool: This is where staking rewards and possibly a DAO will be formed from. 30% of the newly created Luna coin will be allocated
Pre-attack aUST holders:: This means 10% of newly created Luna coins will be allocated to all UST holders that got rekt before the "attack".
Post-attack $LUNA holders: If like me, you bought LUNA hoping to catch a sexy swing or just did it for the lulz when it was on its way down to zero, you're part of the people that are eligible for this 10%
Post-attack $UST holders: Finally, if you somehow had faith in the wrecking ball of a stable coin called UST when it was on its way down to the abyss, then you're part of the legendary squad that will receive the remaining 15% of the new Luna coin airdrop.
Expectations
- I expect the airdrop to go smoothly because even though Terra's algo turned out to be crap, they're still competent in doing the basics.
- The new Luna will most likely be an instant hit and whenever it comes out, it will be wash traded up the ranks.
- I think investors will have their doubts and the pump will not be sustainable but the core Luna community will ensure the project stays relevant by locking up their new Luna coin
- I also think the move to cutout LFG and the TERRA version of STeem's premine is a good idea and will work in the community's favour
- I expect the old Luna coin(LUNC) to experience a resurgence of sorts in the days leading up to the rektdrop, and I'll dump it at the earliest convenience.
- Immediately the new Luna rektdrop is completed, LUNC will be aggressively dumped to oblivion and will be a forgotten crypto project because the community and whatever values that exist in Terra will be in the new chain.
- Finally, I don't think Do Kwon will go to jail but I bet he's going to receive some very angry fanmails from rekt investors.
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Nice post my friend! Me as you try to catch the wave of possible come back of LUNA, which never come! Nevermind, the LUNA which i bought post attack is now in a terra station. Probably not needed to to anything more right? Thanks in advance!
Yeah I hope it works out for you. I hold mine on Binance
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I still have mine on Binance. I don't care much about the fork because even they're idea of distribution is flawed. You can't airdrop coins at the same rate to someone who bought luna two days ago when the chain was already dead for a week or more same as you do with someone who bought when it was still operating.
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Well fuck if I know, I'm holding mine on Binance as well.. I'm going to receive my airdrop, wait for the top or close to it and then dump it hard.
I'll dump LUNC whenever it changes and just move on with my life 😄
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With how controversial this whole ordeal was, I appreciate how objective your take is. No fluff/politics, straight substance. It's clear that some effort is being put into making loyal investors (partially) whole which is better than outright abandonment.
I can't say that I agree with your take because Do Kwon is still in the mix, but that's veering off into politics; I'll keep that tid bit to myself ;P
!1UP
You can't separate Do Kwon from anything that has to do with Terra. I mean, when you think about it, he is Terra.
In any case, they claim to be deleting the official Terra wallet, we'll see how that goes.
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i hope the community takes over the old chain, Fucks Do kwon off and sorts it out with a massive burn. This is what crypto is about, an DO kwon stands for everything we are against. No community no currency.
Honestly, I think it is highly unlikely that they can fork him out. I mean, let's face it, he probably has many anonymous wallet addresses holding Terra right now, and would be holding a decent chunk of Terra(both old and new).
Forking off the Terra foundation wallet is the right move tbf but I reckon there'll be more to the story. In any case, I think the community has to intentionally stand against Do Kwon, if they want to prevent centrealisation.
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Nah, hes probably going to jail.
I seriously doubt it. There will be plenty disclaimers protecting him and all the agrieved people that got rekt will just have to move on because that's crypto life.
The tax evasion thing will be ironed out with money.
I read he has received threats from pissed off investors and one person that later was arrested by the cops came to Do Kwon's house to harass him.
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It is very interesting to know all this that you mention; especially since the crash of LUNA and UST has generated throughout the crypto environment (and rightly so) a lot of uncertainty and distrust among many investors and traders in general.
I think that this forced FORK that you speak of, which will leave LUNA with the same name, but will leave the previous LUNA as LUNC (or Luna Classic) is something that can be positive for the project and for LUNA investors.
However, I dare not to conclusions about the success of the fork after what happened. In my opinion, we must wait to see how the whole process in question and its consequences turn out. Anyway, that's my opinion on the matter. Very good post. Greetings.
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If you intend to gamble though, I suggest you take a swipe at the new coin, whenever it's created. Just buy a very small amount with spare funds(if you have) and see where the market goes.
I reckon that the price of new Luna might be around a couple cents when it is released and if memory serves me right, the community and their VC backers have the ability to pump it to infinity.
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Terra 0 needs a little push in the market and new surge in btc price can do a lot of wonder, but when it will happen wait and watch.
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I wonder if people who have been hurt by the fall will still hang on long with Terra 2. But we will see how it goes.
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I had hoped that LUNAC would go up in price like ETHC did, but with this information, I think it will go down the drain very quickly, as people want to buy back all or part of it.
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This could possibly be a better beginning. But we cannot tell really until the time comes.
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