- Terra’s (LUNA-USD) LUNA crypto is gaining for the first time in over a week
- The coin’s very slight recovery rides on the back of founder Do Kwon’s recent hard fork proposal
- The proposal vote will happen on May 18, though many outspoken Terra members suggest approval will be a difficult feat
Terra developers are attempting to get the network back on its feet. Of course, trying to appease thousands of angry users and developers is quite difficult. With much to do in the way of getting LUNA crypto prices back in order, founder Do Kwon is looking to fork the Terra chain into two distinct networks. But is this the best solution? Many say no, and Kwon has only a couple of days to convince them otherwise.
The Terra network was one of the largest crypto projects in the world, with LUNA existing as the ninth-most popular coin by market capitalization. TerraUSD (UST-USD), LUNA’s stablecoin counterpart, was the fifteenth-largest. However, these two cryptos saw fast failure last week when UST lost its $1 pegged value and couldn’t regain it. The algorithm underlying the algorithmic stablecoin could not stabilize prices and ended up dragging LUNA prices down to a fraction of a penny.
This event is a shining example of why the masses do not fully embrace crypto yet. Indeed, even the largest projects on the planet are not immune to disaster. Less risk-tolerant investors are unwilling to involve themselves in crypto investing as a result. On the other side of the spectrum, investors brimming with hubris are getting a wake-up call from the crash, some of whom lost thousands of dollars from LUNA investments, or worse.
LUNA Crypto: Will Investors Warm Up to Do Kwon’s Hard Fork Proposal?
In the aftermath of the crash, Do Kwon and the Terra team are desperately seeking ways to rebuild the network. This has led to Kwon embracing several different community proposals from users floating their own ideas. Now, Kwon is releasing his own proposal to save the LUNA crypto. Users will have their chance to vote on the proposal tomorrow.
Slated for a May 18 vote, the “Terra Ecosystem Revival Plan 2” is Do Kwon’s plan to massively overhaul the Terra ecosystem. Described by Kwon as a “living document,” the plan is a fluid one. This means the proposal is subject to change with the wants and needs of Terra users and developers.
The broadest change Kwon hopes to bring to the network with the plan is a hard fork. By forking the Terra chain, he hopes to make two networks catering to two different demographics, Terra Classic and Terra 2.0. Terra 2.0 is for developers. It will be the new home to the LUNA crypto, and it will forgo algorithmic stablecoins. Terra Classic, then, is meant to cater more to the end users that used Terra before. This one, though, will come with a new coin, LUNC.
With the vote rapidly approaching, though, it seems that users are resisting Kwon’s proposal. A preliminary vote on the hard fork is overwhelmingly against the proposal. Over 3,500 LUNA holders have voted in this poll at the time of writing, with 91% against a hard fork.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.