June 25, 2024

Terra developers will launch a new network instead of a hard fork

Terra developers will launch a new network instead of a hard fork

Terra representatives stated that the project’s “revival plan” does not involve a fork of the existing network, butcreation of a new one.

They noted that with a classic fork, the new network inherits the history of the original, but this will not be the case with Terra 2.0.

“If Proposition 1623 is accepted, a new blockchain (Terra) will emerge, starting from the zero genesis block, which will not have a common history with Terra Classic,” the team said.

In this regard, applications or assets from the oldnetworks will need to be migrated to a new one - they will not appear there automatically. According to the project representatives, the developers of most popular dapps, including Prism, Stader, RandomEarth and OnePlanet, are ready to be transferred.

Terraform Labs co-founder Do Kwon, proposing a hard fork, called it “a chance to revive the project from the ashes.” This idea was met negatively in the community.

At the time of writing, validators support the emergence of a new blockchain with about two-thirds of the votes.

Terra developers will launch a new network instead of a hard fork

Terra developers will launch a new network instead of a hard fork

Data: Terra Station.

Right during the vote, Kwon made changes to the original proposal, editing some of the parameters for the distribution of tokens of the new network.

Terra's Death Spiral: How and Why LUNA and UST Failed


Due to the collapse of Terra, based in South Koreablockchain company Hashed lost $3.5 billion. The country's authorities counted about 280,000 affected investors in the depreciated assets of the project and revived an interdepartmental group, previously nicknamed the “grim reapers,” to investigate the incident.

Non-profit organization Luna Foundation Guard(LFG) drained $3.2 billion from its reserve fund in a matter of days in May as it tried to restore the algorithmic stablecoin TerraUSD (UST) to its dollar peg.  

South Korean police are taking action, according to KBSto freeze assets associated with LFG. Law enforcement officers turned to local cryptocurrency exchanges with a request to block the withdrawal of any funds of the organization. The police explained the actions with suspicions of the flow of stolen assets into the LFG.

Recall that CEO and founder of Pershing Square Capital Management billionaire Bill Ackman called Terra a crypto pyramid.