Terraform Labs co-founder and CEO Do Kwon proposed a hard fork of the Terra blockchain in the “Terra Ecosystem Revival Plan 2,” which will abandon the algorithmic stablecoin UST.
See related article: UST loses dollar peg as Terra market cap slumps
Under the proposal, the network will be forked with the original chain being called Terra Classic with the LUNA Classic (LUNC) token, and the new one taking the name Terra (LUNA).
Kwon’s proposal is reminiscent of the 2016 Genesis DAO exploit, which led to the birth of the current Ethereum chain, while the original Ethereum chain became to be known as Ethereum Classic.
Terra’s plan proposed airdropping the new LUNA tokens to LUNC and UST investors and stakers and transferring ownership of the new network to the community.
“We believe this token distribution, in addition to best efforts by [Luna Foundation Guard] to make $UST holders whole, best solves for the varying interests and time preferences for each stakeholder group, and most important, creates the most viable path to revive the Terra ecosystem,” Kwon tweeted.
Some UST holders clapped back at the proposals, adding that UST supporters lost their funds in the crash and urged Terraform Labs to address the issue.
The hard fork proposal will go live for community voting on May 18, Asia time.