CEO of Terraform Labs proposes hard fork to revive Terra

The head of Terraform Labs, Do Kwon, officially proposed to hard fork Terra without the UST algorithmic stablecoin.

In the new proposal, Kwon proposes to split the Terra blockchain into two:

• new chain “Terra” with a coin “LUNA”;
• an old “Terra Classic” chain with a “Luna Classic” (LUNC) coin.

One billion LUNAs will be created in the new network, which will be distributed as follows:

• 5% – to developers;
• 35% to Luna Classic owners prior to UST depegging (as of May 7, 2022);
• 10% for Luna Classic owners at launch (May 27);
• 25% – to UST holders (as of May 27).
• 25% to the community pool.

The algorithmic stablecoin UST is not provided for in the new blockchain.