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.
Posted Using LeoFinance Beta
