Terra clarifies that the revival plan is not a fork, but a brand new blockchain; South Korean authorities request exchange to freeze LFG assets

To address the current dire situation of the Terra ecosystem, its founder Do Kwon announced the "Terra Ecosystem Revival Plan" proposal last week. The proposal has now passed the voting threshold and will be officially settled on the 25th. However, there seems to be some misunderstanding within the community regarding the content of the proposal, and the Terra official team clarified this today.

It's a New Chain, Not a Fork

1/ Recently, a few community members (including some from TFL) have referred to the proposed new blockchain in Prop 1623 as a “fork” as opposed to a genesis chain.

Note: The revival plan is not proposing a “fork” of the existing chain, but rather the creation of a new one 🧵.

— Terra 🌍 Powered by LUNA 🌕 (@terra_money) May 23, 2022

Regarding Do Kwon's Proposal 1623, the Terra team has stated that their goal is to create a brand new blockchain, rather than executing a hard fork on the existing chain.

In simple terms, a fork refers to a change in the consensus rules of a blockchain protocol, resulting in the creation of a new chain. The new chain that emerges from a fork will share the historical data with the original chain.

However, the new chain proposed in Terra 2.0 will start from genesis block 0 and will not share historical data with the old chain, which will be renamed Terra Classic. As a result, assets and protocols from the old chain will not exist on the new chain, requiring a migration process.

Many popular protocols have already committed to migrating, such as Terra Domain Service, PRISM Protocol, Stader Labs, and the voting result for this proposal is expected to be finalized tomorrow.

LFG Assets Frozen

While Terra is striving to recover from its downturn, the collapse incident has indeed caused significant losses for many. According to a report by South Korean broadcaster KBS here, the Korean police have requested centralized exchanges in Korea to freeze the assets related to LFG Luna Foundation Guard due to suspicions of internal fund movement by LFG.

Furthermore, as reported by Chosun Ilbo here, Korean authorities are set to meet with the top five Korean exchanges, namely Upbit, Bithumb, Coinone, Korbit, and Gopax, to discuss accountability for token holders' financial losses.