More than 79 percent of Terra’s members have endorsed Do Kwon’s idea to implement the network’s Terra chain restoration plan without the usage of the algorithmic stablecoin, according to Terra’s official statement.
Do Kwon has announced a new proposal in response to the collapse of Terra’s ecosystem, including its stablecoin UST and native token LUNA. Its goal was to restore a fully functional blockchain with some significant modifications.
The network’s founder hopes to address the existing constraints in this way. It will also help to establish a more sustainable structure that will prevent similar problems from occurring in the future.
According to Terra Station, the rebirth effort has approved by 79.57 percent of all members. UST holders, Luna Classic stakers, and devs will all receive the new coin as an airdrop.
Terra will become a community-owned corporation. This gives the community members the most ability to make decisions. Do Kwon is attempting to separate himself from the project in this way. He will respond to the current criticism of Terra Network’s excessive power concentration and centralization.
The redesigned blockchain expects to be considerably more stable and durable, as the key concern surrounding the use of the algorithmic stablecoin also addresses. The lengthy conversations sparked by community members over the last few days Regardless, the vast majority of stakeholders have given their approval to the current approach. It is the only way to restore blockchain functioning in the shortest amount of time possible.
The Initiative’s Key Elements
The following are the primary parts of Do Kwon’s examined initiative. To begin, the new system will not use any algorithmic stablecoins to reduce the chance of it becoming unsustainable. Terra Classic will be the old chain, while Terra will be the new one, with their respective tokens LUNC and LUNA.
Second, the airdrop will utilize to finish the first round of LUNA token distribution. This aims at the most important Luna Classic developers, stakers, and owners.
Third, TFL’s wallet will abolish, making Terra a completely community-owned network.
Fourth, a significant chunk of the token distribution will assign to established dApp developers’ emergence runaway. Furthermore, the agreement states that developers’ interests would integrate with the ecosystem’s long-term viability.
Fifth, it is intended that token inflation will use to create extra incentives for network security. According to the revised plan, the target staking payouts will be around 7% every year. When compared to LUNA’s previous 19.5 percent staking rewards at Anchor Protocol, the new approach may help to create a more sustainable structure.
According to the recently authorized rebirth plan, the following token distribution will take place. The community pool will make up 25% of the total, and it should be governed by stakeholder governance to avoid undue power consolidation.
Pre-attack LUNA holders will receive 35%, with extra derivatives used depending on the LUNA balance held by such addresses. Each of the pre-attack aUST and post-attack LUNA holders will earn 10%. Finally, post-attack UST holders will receive 20% of the funds. According to Do Kwon, this allocation will help to avoid any potential conflicts of interest and ensure the system’s long-term viability.