Terra 2.0 will make its mainnet public on May 27 and there will be an airdrop of its LUNA cryptocurrency.
65% of validators agreed to create a new network, which will not have a native stablecoin.
In less than a month, the chain of events that began with the crash of the Terra network cryptocurrencies could have a resolution. Next Friday, May 27, the Terra 2 mainnet is launched, which was approved by the validators with 65% acceptance. The testnet is already active.
Since the beginning of May, the cryptocurrencies terra (LUNA) and terra USD (UST) have lost practically all of their market value and the decentralized finance (DeFi) protocols of that network have had an almost absolute capital flight. The episode has generated consequences that do not seem easy to mitigate, although there are attempts to leave everything behind and reorganize.
One of these attempts is none other than Terra 2, a new network that will replace the previous one and that will have certain characteristics distinctive that we will mention below.
What will the new Terra 2 be like and what does it promise?
The proposal 1623 was approved by Terra validators on the morning of May 25 (UTC) with 65.5% of the 305 million total votes. As that proposal says, and as CriptoNoticias reported in mid-May, Terra’s new “star” cryptocurrency will be called LUNA (LUNA). The previous one, which will no longer be used, will be called Luna Classic (LUNC), and the network will be differentiated as Terra Classic.
This new cryptocurrency will be distributed through a air drop, that is, a massive distribution to all LUNC and UST holders. The cryptocurrency distribution policy applies both to those who bought LUNC and UST before their value fell (or “before the attack” on May 7, as the Terra developers say) and to those who did so after, although with some exceptions for bridge users with other networks or in “unidentifiable” DeFi protocols.
The snapshot o Final photograph of the amount of LUNA in each account will be taken on May 27. Meanwhile, the distribution of tokens in the air drop It will be carried out following the formulas that are seen in the image below:
Total, 70% of the network’s cryptoactive will be distributed, which leads its proponents to present it as the “most decentralized” blockchain of all. Thanks to this, she would become the “heart of the Cosmos ecosystem”.
Regarding this statement, it is important to note that Terra will hardly reach the level of decentralization of networks like Bitcoin. According to the official database Terra Stationthere are 148 validators with voting power in the network, a number much lower than the number of existing nodes in Bitcoin, 14,887 at the time of writing according to bitnodes.io.
On the other hand, it should be noted that one of the main qualities of Terra Classic will no longer be available in Terra 2.0. It is about the creation of decentralized stablecoins based on algorithms, as it was UST. That was one of the central purposes of the network, and thus it sought to position itself as a possible “Ethereum killer” or “Ethereum killer”, the leading DeFi network.
Without UST on the table, Terra will have to look for a quality with which it can be distinguished above the rest. Until now, beyond the possible developments that can be created in the new network, there is none of this.
Exchanges and DeFi reject Terra 2
Regarding the protocols that will be available with your services on Terra 2, the two “flagships” of the previous version of the network, Anchor and Astroport, will remain. As they will not have the network’s native stablecoin, UST, both the DeFi protocol and the decentralized exchange (DEX) will need to provide more details about their operations in the future. Astroport, for now, clarified that it will continue to operate with both versions of Terra.
In addition, it will also have several more such as Nebula, Prism, Spectrum, Phoenix, Nexus, among others, as reported OrbitalCommandwho introduces himself on Twitter as a developer and promoter of the Terra network.
Although certain projects such as those mentioned confirmed their presence in Terra 2 since the genesis of this new network, other major DeFi like Lido have decided not to be linked with this new projectaccording to reported the portal The Block.
Similarly, various South Korean cryptocurrency exchanges they would have rejected the request by Do Kwon, leading developer of the soon-to-be-defunct UST and promoter of the new Terra network, to list LUNA among its crypto assets. On Twitter, Do Kwon assured that this is false and that he never made such a request to exchanges.
Also, the Binance exchange would be working to help users who were most impacted by the collapse of Terra, as reported by the company in a post on Twitter.
As all these events unfold, users of Terra and its protocols, as well as UST and LUNC holders, await a resolution of the problem to alleviate the losses due to its collapse. As this newspaper reported, there were people who lost a lot of money. Taking into account the events of the last few weeks, it is difficult to predict that this new network will end the uncertainty and doubts of the cryptocurrency ecosystem about Terra.