The cryptocurrency exchange, Huobi Global, has announced that it supports the Terra recovery plan scheduled for launch on May 27. Huobi made the announcement on May 25 via a Twitter post which states that the exchange is backing the launch of LUNA 2.o.
Huobi Global made the announcement in response to an update from the Terra team. In the release, Terra said that its recovery plan, Proposal 1623, has been voted on by the community. They also acknowledged the support of the crypto community in the drive to preserve the Terra ecosystem.
The release says,
“With overwhelming support, the Terra ecosystem has voted to pass Proposal 1623, calling for the genesis of a new blockchain and the preservation of our community.”
The Terra cryptocurrency crashed in value after its stablecoin dropped below its one dollar peg. The fiasco that followed has been at the center of discussion on the stability and reliability of algorithmic stablecoins.
A Recovery Plan
Following the crash of the Terra LUNA and Terra USD, Terraform, the company behind the Terra blockchain announced a recovery plan. It also asked for inputs from the crypto community. These inputs will be voted on to determine the direction, scope and method of implementation of the Terra recovery plan.
According to the Terra team, the Terra Proposal 1623, will involve the launch of a new blockchain, This blockchain will not incorporate the Terra algorithmic stablecoin (UST) unlike the previous chain. Terra team states that it will:
“effectively create a new Terra chain without the algorithmic stablecoin. The old chain will be called Terra Classic (token: $LUNC), and the new chain will be called Terra (token: $LUNA). The chain upgrade will commence a few hours after the Launch snapshot.”
The new chain which will be launched on May 27. The release added that the new tokens will be airdropped to the community in this manner:
“$LUNA will be airdropped across $LUNA Classic stakers, $LUNA Classic holders, residual $UST holders, and essential app developers of Terra Classic.”
For Long-Term Success
#Huobi supports the launch of #LUNA 2.0 on May 27
Are you ready for “LUNA Rebirth”?💙 https://t.co/Vn1FFwlc4y
— Huobi (@HuobiGlobal) May 25, 2022
The token distribution detail favors existing holders and developers of the Terra ecosystem “to align the interest of developers with the long-term success of the ecosystem.”
According to the Terra update, the distribution is as follows:
- Community pool: 30%
- Pre-attack $LUNA holders: 35%
- Pre-attack aUST holders: 10%
- Post-attack $LUNA holders: 10%
- Post-attack $UST holders: 15%
