Would the Terra Luna Plan B work ?

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(Edited)

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Post the Terra Luna event of 7 may 2022 which the Terra luna Ceo refers to as attack on the blockchain there are all kinds of efforts in progress to revive the Terra Luna and terra UST viability.

It is a big mess to say the least and fixing it is not going to be easy.

There are so many stake holders and protecting the interest of all is going to be a challenge.

Finding a middle path that is acceptable to all or let's say most is not going to be an easy task.

There are couple of proposals doing the rounds and the follwing one may be sent for aproval.

The details of the plan are as follows.

If you cannot fix it kill it looks to be the way to go

The current chain that we know Terra Luna as would be halted.

The old chain would be called Terra Luna Classic.

A new chain would be launched

The new Terra chain would have a total supply of 1,000,000,000 that is one billion coins.

30% of the total supply for developers

  • 25% of these coins would be allocated to the community pool and this would be controlled by staked governance.
  • 1% is proposed to Essential Developers emergency allocation. What would be the scope of this fund remains to be seen.
    Since it is for emergency purposes so their would be no lockup.
  • 4% is again for Essential developers.
    However it is proposed that there is a 1 year lock in and after that it would be unlocked over a period of 4 years (my understanding)

What do the investors and holders get?

35% is for all bonded and unbounded Luna for the pre attack snapshot.
Out of there there would be a bifurcation into two categories

  • Holders with less than 1 million Luna
    for them there is 1 year lock in and 2 years vesting
    for holders having
  • Greater than 1 million Luna
    there would be 1 year lock in and 4 year vesting period.

What is there for those who want to take a position now ?

For those who want to hold a fresh position
A 10% supply is for Luna holders who have a holding at any point in time that is irrespective of their position at the time of the attack
A 10% supply would allocated in the new blockchain.
The launch of the new chain time would be the reference point for taking a snapshop for this category.

How this 10% is distributed

Out of this 10% A further 10% would be released at the time of the blockchain and 90% over a period of two years.

What do the UST holders get ?

At the launch of the new blockchain 25% of the Supply is marked for these holders...
However 10% is to be released at the time of the launch of the new blockchain and remaining 90% would be released over a period of two years.

What are the two key dates or block events to note for this proposal

Pre Attack :Snapshot at Terra Classic Block 7544914 that is 2022.05.07 23:00:04 +08:00
Launch of new chain (if proposal is accepted by community voting) 2022.05.27 03:59:51+08:00

Who brings this proposal

Who else but dokwon

Would this plan be a Effective distribution strategy to revive trust.

Trust is something if once broken can take a long time to recover.
A revival plan that is going to span 4 years is a pretty long time specially in the crypto space where projects rise and bite the dust in a matter of months if not weeks.
People who had implicit faith in the project and who have put their hard earned money are going to take a call on this proposal via governance voting on May 18th 2022.

No balm for UST holders?

This proposal does not give any preference to UST holders who held positions before the attack and this can be a pain point for old holders.
Those who had put UST in pools their positions were liquidated due to the depegging event and their value got eroded for sure.

The loss is going to take a long time to recover

Looking at the phased token release schedule may be a point of debate however what is equally important is the trust that the project would enjoy if Plan B becomes effective.

The tokens intrinsic value is derived from its use case and security which are both under scanner in the case of Terra Luna.
The project would have to build trust from scratch and it remains to be seen if it regains its place in the crypto metaverse and in how much time?

ref for this post: https://agora.terra.money/t/terra-ecosystem-revival-plan-2-updated-and-final/18498



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This $luna cash has done more harm than good I just hope it gets better.

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