The collapse of Terra's algorithmic stablecoin UST and its subsequent depegging crisis marked a turning point for the ecosystem. On May 17, founder Do Kwon proposed a "Phoenix Revival Plan" to create a new blockchain without algorithmic stablecoins. Now, with "Governance Proposal #1623" approved, the Terra 2.0 era officially begins.
Key Developments in Terra's Transition
According to Terra Station data:
- 83.27% of LUNA holders participated in voting
- 65.5% voted in favor
- 20.98% abstained
- 0.33% opposed
- 13.20% vetoed the proposal
The Two-Chain Solution
The approved plan establishes a dual blockchain structure:
- Terra Classic (LUNC): The original blockchain rebranded
- Terra (LUNA): The new blockchain inheriting the original name
👉 Understanding blockchain migrations
Important Technical Details
- Not a hard fork: Terra 2.0 is a completely new blockchain
- DApp migration required: Existing decentralized applications won't automatically transfer
- Launch timeline: New Terra blockchain goes live May 27
- Security audit: Final Terra Core version passed SCV Security review
LUNA Token Distribution Plan
The new LUNA token distribution breaks down as:
- 30% to community pool
- 35% to pre-collapse LUNA holders
- 10% to pre-collapse aUST holders
- 10% to post-collapse LUNA holders
- 15% to post-collapse UST holders
Exchange Support and Market Response
Several major exchanges have announced support:
- Huobi and Bitfinex: Confirmed support for Luna 2.0 launch
- OKX: Will support new LUNA token airdrops
- Binance: Working with Terra team but no formal announcement yet
Frequently Asked Questions
What happens to my existing LUNA tokens?
Existing tokens will become LUNC (Luna Classic), while new LUNA tokens will be airdropped to eligible holders.
Will DeFi projects automatically migrate to Terra 2.0?
No, projects must voluntarily migrate to the new chain. The team has clarified this isn't a fork but a new blockchain.
How does the airdrop distribution work?
The snapshot mechanism considers:
- Pre-crash LUNA/UST holdings
- Post-crash holdings
- Staking positions
- Developer activity
When will trading begin for new LUNA?
Most supporting exchanges will enable trading shortly after the May 27 launch.
What's different about Terra 2.0?
The new chain eliminates algorithmic stablecoins entirely, focusing on core blockchain functionality without UST.
Looking Ahead
This transition represents one of the most ambitious recovery attempts in crypto history. With major exchange support and a clear distribution plan, Terra 2.0 aims to rebuild trust while learning from the ecosystem's challenges.
Disclaimer: This content provides market information only. All views expressed are for reference, not investment advice. Investors should make independent decisions. Neither the author nor BlockChain承担任何责任 (Blockchain News) assumes responsibility for any direct or indirect losses resulting from investment activities.