(Twitter) Terra’s co-founder Do Kwon is putting forward a governance proposal to fork the Terra blockchain set to be tabled on May 18 and go live on May 27.
The new chain will not be integrated with the TerraUSD or UST stablecoin. The old blockchain will continue existing with UST and is set to be renamed Terra Classic or LUNC.
The proposal calls for an airdrop of new LUNA tokens to LUNC and UST holders and the essential developers of the Terra Classic blockchain.
The hard fork will see Terra converted into a community-owned chain, with a proposed capped supply of 1 billion LUNC. 25% will be allocated to the community pool, 70% to LUNC and UST holders, and 5% to essential developers, subject to vesting conditions.
The announcement comes after the Luna Foundation Guard announced that it used a significant portion of its crypto reserves to salvage its UST after it lost its peg to the dollar. Binance CEO Changpeng Zhao is among individuals willing to provide capital to salvage the ecosystem after recent volatility.
LUNAUSD is down -3.93%.
