A new version known as Terra 2.0 or Luna 2.0 is set to be published in response to Terra blockchain failing and TerraUSD losing its peg to the dollar approximately three weeks ago. As a result, a new Luna coin will also be made. What you should know is as follows.
The Renowned Crash!
On May 9th, the algorithmic stablecoin UST, which is a key component of the Terra ecosystem and is constructed on top of its protocol, lost its peg.
The algorithm’s operation allowed to crypto exchange 1 UST, which was trading below $1, for 1 LUNA. This plan was created with the intention of destroying the UST and reducing its supply, which should have increased its value. However, there was a lot of selling pressure, and UST never came close to hitting its $1 objective.
What isTerra 2.0?
Do Kwon, CEO of TerraForm Labs, has suggested a Terra Luna hard fork to reconstruct the ecosystem. The current Terra blockchain would be divided into two blockchains in this case. The two chains would coexist while having differing operational principles.
Kwon has formally submitted a governance proposal for the community’s consideration. It is his plan to abandon the UST stablecoin and establish the Terra 2.0 network.
Terra wants to eventually become a blockchain that is owned by the community. The wallet addresses for Terra FormLab and Luna Foundation Guard (LFG) will be removed from the Airdrop whitelist.
The Terra team therefore intends to build a new chain without the algorithmic stablecoin based on “Proposal 1623”. In other words, they’ll maintain Layer 1 technology and stay away from the stablecoin approach that triggered the LUNA death spiral.
The Terra community has ultimately decided in favour of the idea after considerable doubt and discussion over whether to go for the hard fork or not.
Following the hard fork, the new chain will be called Terra, while the old chain will be renamed Terra Classic (LUNC) (LUNA). Do Kwon described the operation of the blockchain and said that the new Terra will not be produced using an algorithmic stablecoin.
Terra 2.0 is now live!
The New Terra Blockchain became live on May 28th!
Terraform Labs announced on Twitter that it has begun generating blocks on the mainnet known as “Phoenix-1.” It began trading at 06:00 UTC, and existing owners of LUNA and UST received a token airdrop with with it.
LUNA 2.0 Cost
LUNA 2.0 was said to cost $50 upon launch, while other speculations suggested pricing as high as $60.
Meanwhile, the new token’s value fell by 60% only a few hours after it was introduced. Sources claim that the Terra (LUNA) 2.0 Price began trading between $17 and $18. The price then surged to toward $20.
The price on the KuCoin exchange started at $0.5 and surged all the way to $30. Soon after, it proceeded to decline and dropped as low as $4 before levelling out around $6. The price of LUNA is now trading at $6.09.