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Do Kwon proposes to fork the new chain with no algorithmic stability, introducing the new slogan "Terra is more than just UST."

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Do Kwon proposes to fork the new chain with no algorithmic stability, introducing the new slogan "Terra is more than just UST."

Two days after disappearing, Terra founder Do Kwon released the second version of the ecosystem recovery plan in the early morning of 5/17. Despite widespread belief that a fork would not benefit Terra, he persisted in launching a new chain without algorithmic stablecoins, and airdropped to holders before the LUNA and UST snapshot.

Terra Ecosystem Revival Plan 2 Proposal Summary

Do Kwon has somewhat returned to his previous style and has retweeted tweets on the positive outlook for the Terra ecosystem on Twitter multiple times, shouting out the slogan "Terra is more than $UST." The proposal summary is as follows:

1. Governance voting will take place on 5/18, and if passed, a fork will occur on 5/27 with no algorithmic stablecoin.

2. The old chain will be renamed Terra Classic LUNC, and the new chain will be Terra LUNA.

3. TFL Wallet will be removed from the whitelist for airdrops, making the new Terra a fully community-governed blockchain.

3. Incentives for network security will be through the inflation of the new token, with a tentative staking yield of 7%.

4. Airdrops will be conducted for Luna Classic, UST holders, and Luna Classic key developers.

New Coin Distribution Ratio

  • 35%: Including non-locked LUNA holders, excluding Terraform Labs TFL.
  • 25%: Community fund pool controlled by community staking governance.
  • 25%: UST holders, only 10% unlocked at launch, the rest unlocked after two years.
  • 10%: LUNA holders including collateral derivatives, only 10% unlocked at launch, the rest unlocked after two years.
  • 4%: Developers with a 1-year linear unlock, the rest unlocked over 4 years.

All tokens with vesting periods are staked at launch and will only be circulated upon unlocking.

Do Kwon's Statement

He believes that the current situation is difficult to reach a consensus due to the differing interests of LUNA, UST, holders, and developers. Maintaining a chaotic state would be destructive to the ecosystem, hence the proposed fork plan. He emphasizes:

The Terra community is my family, no matter how difficult it is, I will always be here, let's rebuild Terra together.

https://twitter.com/stablekwon/status/1526258273820651520

Prior to this, Binance founder Zhao Changpeng CZ, who had been continuously calling for the fork to be useless, tweeted an expression "SMH." (Shaking my head, expressing disbelief).

It seems to be a sarcastic remark, not understanding why Do Kwon insisted on the fork instead of using LFG funds to remedy the situation.

Previously, CZ had revealed that he had inquired about the use of reserve funds by LFG, and understood the purpose of the funds at the time. However, due to user privacy concerns, he believed that Terra needed to disclose this information to the public on its own.