Terra Amends Recent Proposal; Hard Fork Vote Continues 

Terra announced earlier today that it has published an amendment to Proposal 1623, incorporating the community’s feedback since its publication 2 days ago. There are 3 revisions included in the amendment.

Following TerraUSD’s (UST’s) crash, CEO Do Kwon put forth the governance proposal for community members to vote on the hard fork. Reportedly, the new chain would ditch the stablecoin that crashed below $1.

The first of these new revisions is increasing genesis liquidity. The twitter post reads: “For pre-attack $aUST holders, post-attack $LUNA holders, & post-attack $UST holders, the initial liquidity parameters have been modified from 15% to 30% to increase token supply at launch & mitigate future inflationary pressures.”

The second amendment is about introducing a new liquidity profile for pre-attack $LUNA holders. “Wallets with < 10k $LUNA will have the same genesis liquidity as the above groups (i.e., 30% unlocked at launch), & have the remaining 70% vested over 2 years with a 6 month cliff.”

Introducing this new liquidity profile ensures that small $LUNA holders have similar initial liquidity profiles. This would cover 99.81% of $LUNA wallets while only representing 6.45% of total $LUNA at the Pre-attack snapshot.

And the final point is about decreasing distribution to post-attack $UST holders. It says: the allocation for post-attack $UST holders has decreased from 20% to 15% to ensure the de-peg related allocation is on par with the original stakeholder (pre-attack $LUNA) allocation. The residual 5% change from decreasing the distribution to post-attack $UST holders will be allocated to the community pool.

Over the past week, Terra’s ecosystem suffered a severe blow. The collapse resulted in the loss of over 40 billion in just a few days. There are another 5 days left for the vote but much of the community seems to have voted in favor of a hard fork so far. With many changes and revisions, the future of Terra appears uncertain.