Tera "Tera 2.0 Coming Soon... Will Revive New Luna and Blockchain"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Terraform Labs, the creator of the failed cryptocurrencies TerraUSD (UST) and Luna that shook the crypto market due to a value collapse, has announced the revival of blockchain by stating "Terra 2.0 is coming soon."

On the 25th (local time), Terra announced through its official Twitter account, "Terra 2.0 is coming soon," adding, "The Terra ecosystem has overwhelmingly supported the start of a new blockchain and the preservation of our community by voting to pass 'Proposal 1623'." This announcement came from Terraform Labs CEO Kwon Do-hyung, who proposed discarding TerraUSD and Luna and creating a new blockchain, revealing the voting results conducted in the Terra blockchain protocol discussion forum, the 'Terra Research Forum.'

Initially, this proposal received over 90% opposition from members of the Terra Research Forum, but CEO Kwon insisted that the vote should be limited to 'validators' who confirm transactions on the blockchain and pushed for a re-vote, which eventually passed with 65% approval. Bloomberg reported that abstentions were 21%, and opposition was 13%.

As a result of this vote, the Luna token will be revived, but the stablecoin TerraUSD will not be resurrected. The original blockchain will be renamed 'Terra Classic,' and the original Luna token will be renamed 'Luna Classic.' Terra stated, "Our strength will always lie within our community, and today is the most resonant signal of our resilience ever," adding, "We cannot wait to restart our work building the future of money together."

The cryptocurrency industry expects the new blockchain to be operational as early as the 27th. Bloomberg noted, "While this vote has brought a victory to CEO Kwon and his supporters, doubts remain about whether Terra can ultimately be revived."