The Earth ecosystem is gearing up for a relaunch after this month’s spectacular collapse that caused losses of more than $40 billion. While this is happening, the current LUNA token has dropped to $0.00018, which is a remarkable drop considering it was trading at $120 a few months ago.
How will Terra be relaunched?
Earth’s revival plan has several important parts. The purpose of this revival will be to ensure that the strong community that existed before the collapse continues. The same goes for some of the larger projects that were built on Earth, like Astroport, Station and Stader.
First, the current Terra will change its name to Terra Classic, while its token will be known as LUNC. The new blockchain and token will be known as Terra and LUNA, respectively.
Second, the network will kill TerraUSD, the stablecoin that caused this problem. Therefore, it is still unclear whether the developers will release a new stablecoin or not. Furthermore, it is still unclear whether they will create a new guaranteed stablecoin or whether they will adopt existing coins like USD Coin and Tether.
Third, to encourage essential developers to stay on the network, 0.5% of the total supply will be allocated to them. They will also receive 1.5% of total assets as part of the developer alignment program and 8% of total supply for the mining program. The remaining coins will be rewarded to LUNA and UST holders before and after the attack.
Some of the holders that will not be eligible for allocation include UST or LUNA protocols with the Terra and LUNA bridge that cannot be verified. Terra 2.0 will be released on Thursday of this week.
Is Terra 2.0 a good investment?
The collapse of Terra has caused a lot of people a lot of pain and there is a possibility that most of them have no incentive to buy the currency again.
While South Korean prosecutors are making a case against Do Kwon, it’s too early to determine whether he was responsible for her collapse. In my opinion, UST was a brilliant idea that failed.
As such, there is a chance that Terra 2.0 will address the loopholes that existed in the previous version. Due to its strong name recognition, we cannot rule out a situation where the price of Terra rebounds in the short term.