The migration to the Terra (LUNA-USD) 2.0 blockchain, and accompanying LUNA airdrop will be delayed slightly. After previously announcing the transition would occur today, Friday, May 27, it seems the launch will happen tomorrow, May 28.
1/ Yesterday, we said Terra 2.0 is coming. Tomorrow, it arrives.
The community has been working around the clock to coordinate the new chain’s launch. Subject to potential change, we expect Terra to go live on May 28th, 2022 at around 06:00 AM UTC.
— Terra 🌍 Powered by LUNA 🌕 (@terra_money) May 27, 2022
Terra 2.0 represents a new chapter for the LUNA crypto, following its debilitating recent crash. After the TerraUSD (UST-USD) stablecoin crashed earlier this month, the network founder, Do Kwon, successfully proposed transitioning to the next stage of the community-driven cryptocurrency network: Terra 2.0.
Terra 2.0 is a sort of revival plan for the LUNA and UST cryptos. Network validators approved the plan just this week, with 65% of votes in favor. Terra 2.0 is a new hard fork on the Terra blockchain. Claimed to be the most decentralized blockchain ever, its sequel maintains many of the same functionalities. The likes of Terra Station, Terra Finder and Terra Observer are all set to return once the Terra 2.0 mainnet goes live.
A number of crypto exchanges have already announced supporting Terra 2.0, including Binance (BNB-USD), FTX and Kraken.
LUNA Drop and Terra 2.0 Offers UST Owners Glimmer of Hope
The past month saw UST, linked in value to LUNA, shed nearly its entire value. TerraUSD is an algorithmic stablecoin designed to track the U.S. dollar. One UST is equal to $1 dollar’s worth of LUNA. Through smart contracts on the Terra blockchain, the two should always maintain that equivalent.
However, as UST owners sold off a large amount of the stablecoin earlier this month, it sparked a devastating chain reaction. LUNA was one of the primary avenues to cash out UST. As investors abandoned UST, Terra also dropped, further devaluing UST and degrading the exchange mechanism between the two. UST dropped to just 7 cents this month, as the LUNA token dropped 99.7%, wiping billions of dollars in investments.
Kwon has since abandoned UST, but suggested a revival of the Terra blockchain, using exclusively LUNA.
The LUNA airdrop is essentially a redistribution of the crypto based on previous ownership. Eligible investors will receive up to 30% of the airdrop on May 28. The rest of the airdrop is planned to be distributed over the next two years.
On the date of publication, Shrey Dua did not hold (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.