A brand new Terra Chain, and no Do Kwon – Will the new proposal pass?

• The Terra community is currently voting on a proposal supporting the “rebirth” of the blockchain, among a host of other changes.
• Kwon remains a questionable character in the crypto space, with regulators warning of similar impending collapses.

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The Terra (LUNA) community is currently voting on whether Terra should form a completely new blockchain. There are about 6 hours left before the final vote is made. So far, the majority of voters support this proposal.

According to data from Terra Station, about 80 percent of all LUNA token holders have taken part in the vote. Those supporting the proposal lead the vote count at 67 percent, while those opposing have 12 percent. About 20 percent of LUNA holders are yet to cast a vote. Additionally, most of those voting ‘yes’ seem to be validators of the network.

Details on the reincarnation of Terra

Other than forging a whole new blockchain, the “Terra Builders Alliance: Rebirth Terra Network” proposal suggests multiple other changes. The old Terra blockchain will be renamed Terra Classic, and its native token LUNA Classic (LUNC). The token for the new network would retain the name LUNA. 

Moreover, the network would airdrop LUNA to all previous holders and stakers of Luna Classic and UST. Currently, Kwon and the Terraform Labs (TFL) are gathering snapshot data of those eligible for an airdrop. Luna Classic and UST holders who had the token before Terra’s collapse (May 9), will receive Lion’s share of the airdrop. Speculators suggest “the post snapshot block 7,790,000 could happen as soon as Thu May 26, 2022.”

Of importance, should the proposal go through, it would mark the end of the UST algorithmic stablecoin. The new chain, on the other hand, would go live as soon as May 27, according to Kwon.

Another critical highlight is that Terraform Labs, or TFL, will not be part of the new token airdrop. This effectively cuts off the company and its founder Do Kwon. The change is meant to make “Terra a fully community-owned chain.” 

Seeking answers, solutions, and justice

Since Terra’s meltdown, Kwon has made multiple attempts at pacifying Terra community members, if not the larger crypto community. He is now a controversial character in the industry, especially after the network’s “kill switch” was revealed. 

Read More: Was Do Kwon involved in Terra’s destruction? An old video discloses he had a “kill switch” for the network

Many other theories have been advanced to explain the crash. However, one Terra holder, driven by frustration over a $2.4 million loss, decided to personally seek answers and possible solutions for the crash.

Regulators’ hawk eyes now look onto the crypto industry more than ever and in a somehow “I told you so” manner. South Korean tax authorities have already fined Kwon for fraud and tax evasion. Meanwhile, the Chair of the US Securities and Exchange Commission (SEC) says similar crashes will likely follow.

Still, IMF (International Monetary Fund) boss says investors shouldn’t distance themselves from crypto just because a single project from the lot collapsed.