The Terra 2.0 (LUNA-USD) developers at Terraform Labs are trying their damndest to redeem themselves after the utter chaos that swept their project. And indeed, attempts to turn around the network had originally been met with some success. But this success has not been long-lasting, as the now-bifurcated ecosystem remains on a steady decline since the turnaround launched. Polygon (MATIC-USD) is now swooping in to woo the projects on the struggling networks, and it’s doing so with great success.
Terra’s massive failure two months ago is now one of the most infamous instances of crypto collapse. It has been scrutinized around the world by a great many crypto skeptics and believers alike. Since constructing the Terra 2.0 network as a successor to Terra Classic (LUNC-USD), Terraform Labs has gotten the heat to die down surrounding its failures — if only slightly.
Indeed, Terra 2.0 is built to minimize the fallout between users, developers and Terraform Labs itself. Terra Classic gets to exist just as it was, with the hopes that its TerraClassicUSD (USTC-USD) stablecoin can reclaim $1 and return to normalcy. Terra 2.0, then, exists for decentralized application (dApp) developers to have a clean slate to build upon. Theoretically, it is free of the uncertainty that exists on the classic network.
However, what’s done is done, and many developers don’t want to work on Terra at all. Competitor networks certainly understand this; they’re looking to steal as many of these developers as possible to build on their own projects. Polygon is one such network, and it seems like it is pushing hardest to migrate these developers to its own platform.
Polygon Network Spends $20 Million to Lure in Terra Developers
The Polygon network is an Ethereum (ETH-USD) layer-2 that’s got a lot to prove in the wake of Ethereum’s Merge upgrade. After the Merge is complete, Ethereum will be a much higher-scaling network; it will be able to process a great many more transactions, and likely at a much lower cost. In order to continue attracting new users, Polygon can’t simply coast on being a workaround for Ethereum’s slowness. This could explain the project’s push to recruit as many disgruntled Terra developers as possible.
Since the launch of the Terra 2.0 network, Polygon is migrating dozens of Terra projects to its own network. Today, there are a total of 48 projects making the move specifically to Polygon.
In May, Polygon began this effort by announcing a multi-million dollar fund to assist projects migrating to its network. Polygon is footing the bill for these projects as a part of the initiative, launched in partnership with OnePlanet NFT. OnePlanet is a non-fungible token (NFT) marketplace on Terra that’s among the first to migrate to Polygon.
This week marks the beginning of these projects’ actual migrations to Polygon. As this occurs, the MATIC crypto is getting slight boost of about 3%. LUNA, on the other hand, is sliding by 4%.
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.