Unless you’ve been living in a cave since the beginning of May, you’ve already heard about the collapse of the Terra ecosystem, its native token LUNA, and the UST stablecoin.
This slump that has impacted the entire crypto market which has already been battered by a most volatile economic and geopolitical context, should come to an end with the acceptance of the 1623 proposal. That’s all the bad news we wish for the Terra ecosystem and its new blockchain.
Luna 2.0 is the native token of the new Terra 2.0 blockchain. It, therefore, takes the name of its counterpart, the Luna, while the latter becomes Luna Classic (LUNC). This new cryptocurrency (as well as the new Terra blockchain) has thus cut ties with the UST algorithmic stablecoin, now called UST Classic. We can feel Do Kwon’s will to separate himself from what may have been problematic in the first iteration of the blockchain.
Most DApps should move to the new blockchain in the first few days. Nevertheless, Do Kwon still specified that the old blockchain and its associated token will not disappear.
From a purely practical point of view, the new blockchain was launched on May 27 and a snapshot was taken on Thursday May 26 to determine who is eligible for which specific part of the airdrop.
Airdrop? What airdrop? Yes, Terra wants to compensate their investors who experienced losses during the depeg through an airdrop, which will take place over a total of two years, according to the following terms:
- 35% of the initial tokens will be divided among all LUNA holders before the crash.
- 15% of the LUNAs will be reserved for those who held aUSTs (i.e., USTs stuck on Anchor Protocol) before the collapse.
- 15% of the initial tokens in the new chain will be reserved for those who purchased USTs after the May 7 collapse.
- 10% of the new LUNAs will go to those who purchased LUNAs after the collapse, and they will be returned gradually over a two-year period.
- 30% will end up in the community pool, to support the effort of dapp developers and ensure that the new chain maintains its value as a DeFi ecosystem.
In conclusion, it’s still a bit too early to say but here is a list of exchange platforms where LUNA 2.0 is available: Binance, Bybit, Crypto.com, FTX, KuCoin.
If you don’t have any and you want to buy some Terra 2.0, you can go to these exchange platforms but don’t forget that we are still in a rather bearish market configuration. Not to mention the extreme volatility that we have witnessed on its launch day. On the other hand, If you are eligible for airdrop, the tokens will appear on your account directly.
Should you get into Terra 2.0? Only time will tell. Do not let FOMO get the better of you and if you are in doubt, it would be wise to wait it out.