While his proposal for a fork of the Terra blockchain is still subject to a community vote, the founder of Terra has just changed it.
New twist in the Terra blockchain soap opera. Do Kwon, the boss of the Terra blockchain, has just modified his proposal for a fork of the Terra blockchain, submitted to the vote from this Wednesday until next Wednesday. A modification in the middle of a vote, therefore.
“This will be a living document to coordinate the launch of the new network with the community. Details are subject to change,” Do Kwon said.
It now seems likely that he will continue to tweak this to his liking, which could only add to the sourness of his community. On Monday, Do Kwon had mentioned a plan to rebuild its weakened ecosystem, after the collapse of its algorithmic stablecoin terra usd (UST) and that of the cryptocurrency luna in a context severe turbulence in the cryptocurrency market.
According to the initial proposal, the Terra blockchain would keep the Terra name while the old blockchain would be rebranded as “Terra Classic”. The two blockchains will be able to coexist. Terra will be developed without the UST algorithmic stablecoin and will offer a limited amount of luna cryptocurrency, one billion units. The fork mainly provides for the redistribution of the luna cryptocurrency to investors and developers who were present before or after the luna collapse. If the fork were to be accepted, it would begin on May 27.
Changes to token redistribution
What Do Kwon is now proposing are changes to how the Luna cryptocurrency is redistributed, to “take into account” feedback from the community, which is rebelling against the proposal.
“Some token allocation details have been changed in the proposal to reflect community feedback. If you have already voted and disagree with the changes, please vote ‘no’, you you still have five days to do it”, specifies the latter.
Do Kwon now proposes to transfer the tokens promised for users who held 10,000 luna cryptocurrencies or less before its collapse in the following way: 30% (instead of 15% in the initial proposal) will be released at the launch of the new blockchain, the The remaining 70% will be unlocked over a period of 2 years.
“This would cover 99.81% of the luna portfolios while representing only 6.45% of the total lunas during the pre-attack,” he points out.
In addition, Do Know proposes to reduce the distribution of the luna cryptocurrency to holders of the stablecoin terra usd (UST) who had placed their token on the Anchor protocol in order to make it grow. The distribution share has been reduced from 20% to 15%. “The 5% saved goes to the community pool”, he further specifies.
A community that opposes the fork proposal
This modification in full vote is not the result of chance: his proposal has come up against, from the start, strong opposition from the Terra community. Despite some proposals that may seem attractive, such a modification risks increasing the mistrust of its community.
According to a unofficial poll posted on the Terra blockchain forum, 7123 members expressed their feelings about the Terra fork. At the time of writing this paper, and the result is clear: 91% are against when only 9% approve of this proposal.
A third of the votes to block the fork
Among the avenues suggested to save the ecosystem this proposal often comes up: that of massively destroying the luna cryptocurrency, which would restore the situation (fewer lunas in circulation having to raise the price of each unit, with global capitalization of the set of comparable lunas).
Despite this unofficial poll, the final decision of the fork will depend on voices that weigh more within the ecosystem: in particular those of the holders of the cryptocurrency luna, as well as the validators of the blockchain. At the time of writing this paper, the fork proposal is supported (in the official poll) by 79% yes, for 0.30% no and 17% no with veto. According to the terms of the vote, if the percentage of no with veto exceeds 33.4%, the proposal will be abandoned even if it has the support of the majority of validators.