Crypto exchanges welcome Luna 2.0 but holders face two-year token wait
Several major crypto exchanges say they’re already planning to list Luna 2.0 after the Terra community voted overwhelmingly to support Do Kwon’s revival plans.
Terra’s DeFi ecosystem experienced a spectacular fall from grace when UST lost its dollar peg and Luna’s value was decimated. It had previously enjoyed an all-time high of $116.
But on May 27, Terraform Labs will fork its Terra blockchain and do away with algorithmic stablecoin UST after a massive 65.5% of the more than 300 million votes cast by Luna holders were in favor of Proposal 1623.
When the new Luna is launched, old tokens will become Luna Classic (LUNAC) and an airdrop of the new tokens will be handed out according to snapshots of user holdings before and after the crash. Specifically:
- 30% will be retained for the community pool.
- 35% will go to pre-crash LUNA holders.
- 10% will be set aside for pre-crash Anchor-staked UST holders.
- 10% will be handed to post-crash LUNA holders.
- 15% is earmarked for post-crash UST holders.
However, Terra holders won’t get all their new tokens on May 27. Most will receive 30% on the deployment of the new blockchain with the rest distributed over the following two-year vesting period with a six-month cliff — likely an attempt to disincentivize a large offloading event.
While many investors in Terra and the raft of DeFi projects with substantial exposure lick their wounds, several crypto exchanges have come forward with plans to list the new token.
Read more: Raoul Pal doesn’t want people to be angry after he appeared to hype Terra
HitBTC and Huobi have already confirmed that they will list the revamped Luna and the world’s largest crypto exchange Binance recently confirmed that it would work with Terraform Labs to help users receive compensation.
On Wednesday, Terraform Lab’s founder Do Kwon trashed reports that he went cap-in-hand to top Korean exchanges hoping to get his new token listed.
The initial rumblings of support could hint at another hype train similar to that enjoyed by Do Kwon’s DeFi project the first time around.
However, following the crash, previous Terra touters look to have stepped back from their support of the project. Despite now claiming to have never owned or understood Terra, Crypto guru Raoul Pal once told his followers that it was a “risk-free” investment.
Terra revival clouded by investigations
While Kwon may have been able to replicate at least some of the buzz around his flatlining DeFi project, the impact of the crash was felt keenly across the crypto space.
Many investors who went all-in on Luna, or staked tokens on Terra’s Anchor protocol are still picking up the pieces. Indeed, police in South Korea have stepped up their presence around well-known suicide spots.
Minister of Justice Han Dong-hoon re-established and expanded the joint financial and securities crime investigation also known as the ‘Yeouido Grim Reaper.’ The team, which takes its nickname from Seoul’s financial district, was inactive for more than two years but its first new investigation target will be Terraform Labs.
Not to mention, rumors have surfaced about potential civil litigation from US investors burned in the crash. Terra researcher and serial tweeter @FatManTerra said that they had received information about a forthcoming class-action lawsuit.
The person behind the Twitter account later corrected that the unnamed law firm was preparing mass arbitration which can swamp a defendant with legal costs.
Read more: Crypto streamer arrested after failed Terra founder confrontation
However, another Twitter user claimed to have been feeding false information to the account which was then posted. “I don’t blame your skepticism but keep an open mind,” FatMan said in a reply to the detractor.
Protos has contacted both Twitter accounts and will update this story should they respond.
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