Last week, the UST stablecoin deviated from the US dollar benchmark, dragging down the Terra Luna blockchain-specific LUNA token. Now, Luna Foundation Guard is exploring options to compensate users who lost everything.
Try to save Luna at all costs
He wants to save the Terra blockchain. Terra Blockchain boss Do Kwon broke his silence on Monday to talk about plans to rebuild his weakened ecosystem after the collapse of his algorithmic stablecoin terra usd (UST) and cryptocurrency Luna. Against the background of violent turbulence in the cryptocurrency market.
On Monday, it posted a proposal to rebuild its blockchain, titled “Terra 2 Ecosystem Restoration Plan,” in a lengthy tweet beginning with “Terra is more than UST.” “Terra’s application ecosystem includes hundreds of developers” and “a state-of-the-art infrastructure”, guarantees the latter.
Attempts to save the Terra blockchain have been futile since the collapse of the UST and the LUNA cryptocurrency. Additionally, the Luna Foundation, which oversees Terra’s blockchain, has seen its cryptocurrency reserves melt like snow in the sun, and they’re supposed to protect the ecosystem when things go wrong. In this case, Do Kwon had to come up with a contingency plan, hence the fork proposal.
What Do Kwon proposes is to “fork” its blockchain, that is to say to modify the basic rules which constitute the essence of this blockchain. Yesterday, his community voted on the proposal.
What would such a fork look like? On the one hand, the Terra blockchain will keep the Terra name, while the old blockchain will be renamed “Terra Classic”. The two blockchains will be able to coexist. Terra will be developed without UST and will offer a limited amount of LUNA cryptocurrencies, 1 billion units. According to a specific distribution plan, the fork redistributes the luna cryptocurrency to investors and developers who were present before or after the luna crash.
Meanwhile, the second solution is not to save Terra Luna. As such, it aims to compensate the thousands of users harmed by the fall of UST and LUNA. Moreover, it emphasizes the preferential repayment to minority shareholders which could harm the whales.
The fork of a blockchain: a phenomenon that has already taken place
A first vote took place on the Terra Luna forum on Tuesday May 17 to ask for the wishes of the community. Only 24 hours after it was put online, the decision seems to be final for the fork imagined by Do Kwon. In fact, 92% of the 5,800 voting members voted against the fork.
In the comments section, negative opinions about the fork have multiplied. Instead, many users said they were in favor of a mass destruction of LUNA tokens in an effort to restore the situation. Of course, this preliminary vote does not represent the final decision of the community. Indeed, all users who have created an account on the Terra forum will have access to this survey. The final decision will be made by LUNA token holders through the governance module.
Blockchain forks are not a new phenomenon. As a reminder, a bit like a digital book, the blockchain brings together all the blocks (batches of transactions) of the network, from the oldest to the most recent. The two most famous blockchains are Bitcoin (and its own cryptocurrency Bitcoin) and Ethereum (and its own cryptocurrency Ethereum).
Each blockchain has its own history, its own crypto-currency, its own security rules but it is possible that at some point in its history, the blockchain will undergo a fork, a change in the elements of the rules, these elements make up the essence of this blockchain.
Forks can have different meanings: adding a feature that strengthens the security of this blockchain. For example, in 2017, the Bitcoin blockchain underwent a fork The fork, which notably led to the emergence of a new cryptocurrency: Bitcoin Cash.
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Terra Luna fork rejected by the community
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