Terra 2.0 Plan Officially Approved, Testnet Goes Live

Terra’s widely watched revival plan has now officially passed, with 65.5% of holders in approval of the move.

Under the proposal, the Terra 2.0 blockchain will now be officially launched on May 27, beginning with an airdrop of new LUNA tokens to holders on the old chain.

Terra validator Orbital Command also said in a tweet that the testnet for Terra 2.0 is now live.

The blockchain is now set to take a snapshot at its 7,790,000 block by May 26, with the airdrop set to commence later this week. Initial liquidity from the airdrop will be evenly distributed between large and small holders of the old LUNA.

While holders from before and after the crash will be subject to the airdrop, holders from prior to the crash will receive more tokens.

65.5% of LUNA holders approve Terra 2.0

About 83.3% of LUNA holders- 305.98 million holders- participated in the vote. Of that figure, nearly 21% abstained from voting, while over 13% voted against the move.

13.2% of voters have vetoed the move. It is still unclear how the veto will be considered by Terra.

Terra founder Do Kwon and Terraform Labs (TFL) recently said they were collecting snapshot data from major exchanges for the airdrop. LUNA and UST holders across all Terra DeFi platforms will be eligible for the airdrop.

TFL and Kwon will also play no part in Terra 2.0, with their wallets being excluded from the airdrop. The new blockchain will be entirely “community owned.”

The old blockchain will be called Terra

Who will list the new LUNA?

But it is unclear how the new LUNA will be traded. In the wake of the crash, most major exchanges had delisted UST and LUNA.

Terra is allegedly facing difficulty in listing the new LUNA in South Korea- a major market for the token. Reports from local media suggest that most of the country’s top exchanges are against listing the new token.

This also due to Kwon and TFL coming under investigation by the South Korean government over allegations of embezzlement and tax evasion.

With more than five years of experience covering global financial markets, Ambar intends to leverage this knowledge towards the rapidly expanding world of crypto and DeFi. His interest lies chiefly in finding how geopolitical developments can impact crypto markets, and what that could mean for your bitcoin holdings. When he isn’t trawling through the web for the latest breaking news, you can find him playing videogames or watching Seinfeld reruns.
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