- Terra (LUNA-USD) is on the verge of a major LUNA crypto makeover
- The introduction of a new chain, Terra 2.0, will catalyze founder Do Kwon’s Terra revival plan
- Changes to the network also bring an airdrop and a rebrand of the old LUNA coin
Terra (LUNA-USD) crypto holders, rejoice! The network’s post-collapse revival plan is going into motion. Terra 2.0 is a completely new blockchain project being tested right now. But this move has broad implications for LUNA. In fact, LUNA is getting an entire rebrand, while another LUNA comes into the picture.
As Terra developers pick up the pieces that remain of the original network, founder Do Kwon has been conversing with the community on what to do next. Kwon released a revival plan for the network, originally advocating for a hard fork. However, this option was quite unpopular with the community; a preliminary vote on the matter saw over 90% of voters against the idea.
After going back to the drawing board briefly, Kwon and the Terra team came back with a revised proposal. This time, rather than hard-forking the network, Kwon proposed creating a second chain from the ground up. This morning, the vote passed, meaning the community approved of the new plan.
In the new plan, developers will split Terra into two ecosystems — Terra Classic and Terra 2.0. Developers are already deploying the test network for Terra 2.0, allowing some users and developers to try out the new digs. The full launch of the Terra 2.0 network is slated for this Friday, May 27.
What Does Terra 2.0’s Launch Mean for the LUNA Crypto?
With the 2.0 launch on the horizon, LUNA crypto holders might have some questions. What’s going to happen to LUNA? Will it play a role on both networks? Things are a bit confusing, but not complicated.
The LUNA crypto as users know it will carry on with the implementation of Terra 2.0. However, it won’t be quite the same. The LUNA used on Terra 2.0 will be an entirely new coin. Meanwhile, LUNA as investors know it now will be rebranded to Luna Classic, taking on a LUNC ticker symbol. This change reflects the crypto’s status as the Terra Classic native coin.
So, while the current LUNA crypto won’t stay LUNA forever, users will still be able to hold and use it on the original network after Terra 2.0’s implementation. Developers are not abandoning the project. It will operate just as it had prior to the meltdown earlier in the month.
In addition to the rebrand, though, users who hold LUNA currently will be able to receive new LUNA through the Terra 2.0 launch airdrop. Developers are airdropping 70% of the coin’s total supply to Terra community members. Coins will be allotted out to users depending on how long they’ve held LUNA; those who held the coin before the network’s collapse will receive a higher number of coins than those who bought it for pennies after the fact.
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.