Terra’s LUNA fork could happen tomorrow, here’s how you need to prepare

Terra’s LUNA fork could happen tomorrow, here’s how you need to prepare
  • Terra’s LUNA fork proposal has passed with 65.5% votes, Revival Plan 2 in action without algorithmic stablecoin UST.
  • The Korean Herald writes Do Kwon contacted top five Korean cryptocurrency exchanges for LUNA 2.0 listing, but he denies it.
  • Three law firms have offered to commit over $15 million to a community litigation fund for a potential class action lawsuit against Terraform Labs.

Terra’s LUNA 2.0 testnet is now live, the snapshot could happen on May 26 and the mainnet launch is expected to occur as soon as Friday, May 27, thus completing the LUNA fork. Terra’s mainnet launch will be accompanied by an airdrop for eligible LUNA and UST holders. Whistleblowers from the Terra community have gathered legal support and a litigation fund to file a lawsuit against Terraform Labs and its co-founders.

Terra’s LUNA 2.0 is here, testnet is now live

Voting on Do Kwon’s Terra Ecosystem Revival Plan 2 is now complete, with a majority of the community welcoming the rebirth of Terra, giving birth to LUNA 2.0. 65.5% of the votes were in favor of the plan to revive LUNA, and distribute the new token to “pre-attack” and “post-attack” LUNA and UST holders and the developer community.

Terra’s LUNA fork could happen tomorrow, here’s how you need to prepare - 1

Voting on Proposal 1623 Rebirth Terra Network ended

Orbital Command, a validator dedicated to educating the Terra community, announced on Twitter that LUNA 2.0 testnet is now live. The validator announced a mainnet launch is set to occur on May 27, the event that should complete Terra’s LUNA hard fork.

The LUNA 2.0 native asset is LUNA and community members holding both before and after “the attack” LUNA and UST are eligible for the first airdrop, including 30% of all tokens. The “pre-attack” snapshot is from May 7 and the “post attack” one is scheduled for May 27.

For better understanding, a user with 1000 UST on May 27 (“post-attack” snapshot) is eligible for 0.013 times 1000, 13 new LUNA tokens. Each category is eligible to receive new LUNA in a fixed manner:

  • Pre-attack LUNA - 1 : ~1.1
  • Pre-attack aUST - 1 : 0.033
  • Post-attack LUNA - 1 : 0.000015
  • Post-attack UST - 1 : 0.013

Regardless of the category in which a user falls, 30% of the LUNA 2.0 airdrop will be unlocked at the genesis on May 27 and the rest would be vested linearly over two years with a six-month cliff. This period ensures that token holders with small quantities have similar initial liquidity profiles. The airdropped tokens will be in a bonded state and users will have to wait to un-bond for 21 days before being able to transfer them. In this case, un-bonding is the action of telling the LUNA 2.0 network that you want to unlock your tokens.

Not a hard fork, but a genesis chain

Do Kwon’s final recovery plan for LUNA drops algorithmic stablecoin UST and proposes the development of a new blockchain, while the LUNA asset name remains the same. This process is being referred to as a hard fork in the Terra community.

Terraform Labs has shed light on the nomenclature and explained that the rebirth of LUNA as a genesis chain is not a hard fork, though. LUNA 2.0 would not share all of its history with the previous chain, unlike what occurs in a typical hard fork. Therefore, LUNA 2.0’s blockchain starts with block 0 and abandons LUNA classic.

This means applications that existed on LUNA classic (LUNC) do not pre-exist on the new chain, and they will need to be migrated to LUNA 2.0.

Several protocols on LUNC have come forward with support for LUNA 2.0. Phoenix Finance, Spectrum protocol, Astroport, Terra Name Service, Falcon wallet are among the key applications that are ready to migrate to LUNA 2.0 and extend their support to Terraform Labs.

Do Kwon denies approaching Korean exchanges for LUNA 2.0 listing

A South Korean media outlet, Heraldcorp, reported that Do Kwon, the co-founder of Terraform Labs, approached the top five cryptocurrency exchanges of Korea for a LUNA 2.0 listing.

The financial investigation arm of South Korean police force is currently investigating Terraform Labs and the two sister tokens, LUNA and algorithmic stablecoin UST, following their colossal crash. Authorities reached out to exchanges, asking them to freeze accounts related to Terraform Labs’ collapsed tokens. As a consequence, exchanges have ended their support for LUNA (LUNC).

Do Kwon addressed the news on his Twitter handle and denied the allegations. Heraldcorp had reported the incident after an industry insider shared details of how contact was made and the contents of the Telegram message sent by Do Kwon’s executive from Terraform Labs.

Binance CEO CZ drops key details related on LUNA and UST crash on AMA

In an AMA session held on Reddit, users reached out to Binance CEO Changpeng Zhao and asked several questions related to the colossal UST crash and de-peg, and the upcoming LUNA hard fork – or genesis chain as Terraform Labs refers to it.

Binance’s CZ revealed that the world’s largest exchange had staked Terraform Labs’s algorithmic stablecoin UST in the Anchor protocol. However, it was a part of the exchange’s earn program and it was accompanied by user education and extensive disclaimers.

Binance was transparent about how staking UST on the Anchor protocol works, and its associated risks. CZ alleviated concerns of UST and LUNA holders on Binance and offered insights on why the exchange paused trading of the assets when network was unstable and the tokens’ blockchain halted through the event of the crash.

Whistleblower bands together three law firms to fight Terraform Labs

Terra community member and whistleblower “FatMan” has banded support from three leading law firms to raise funds for litigation. His goal is to file a class action lawsuit against Terraform Labs and Do Kwon et al.

@FatManTerra has shared regular updates and insights from whistleblowers related to the crash of UST and LUNA and the involved institutions on his Twitter account.

LUNA 2.0 prepares for rebirth, meme coins break into rally

Terraform Labs’ LUNA 2.0 is set to launch on the mainnet, and the crypto market is on track to recover from the recent bloodbath. Shiba-Inu-themed meme coin SHIB price took off, fueling a bullish sentiment among investors.

Analysts at FXStreet have evaluated the Shiba Inu price trend and predicted a target for SHIB. For more information, watch this video:

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