Crypto moves fast, extremely fast. Terra is a showcase of just how fast the industry moves. Within a couple of weeks, Terra has gone from being the decentralized stablecoin of choice, to collapsing in a matter of days, to rising from the ashes as a transformed blockchain.
Days after the death of UST and LUNA, the founder of Terra, Do Kwon announced a comeback plan. However, instead of salvaging the previous chain, an entirely new Terra network would be launched. This time round though the chain wouldn’t be centered around UST. Instead, the algorithmic stablecoin would be totally discarded, with no plans for its introduction to the new blockchain. Kwon argued that “Terra is more than UST,” and with that published a governance proposal titled “Terra Ecosystem Revival Plan 2”.
The governance proposal went through with much ease, having 65.50% in favor, 13.20% opposing it, and 20.98% abstaining from voting. While the vote went through, many on public forums and Twitter were opposed to a new blockchain. Some advocated for the burning of LUNA tokens and UST. However, Kwon was quick to point out that this was not possible as such tokens are owned by investors and not Terra. Now, with the governance vote going through, it has paved the way for the new network to launch and for new LUNA tokens to be airdropped to affected holders of USTC and LUNC (original UST and LUNA).
Terra 2.0, dubbed Phoenix-1 (to represent its rise from the ashes) has since gone live, with blocks being produced. LUNA tokens have also been airdropped to affected investors. Meanwhile, the old chain has been rebranded to Terra Classic with LUNA changing its ticker to LUNC. UST still exists on the old chain, though it is no longer a stablecoin and is now called Terra USD Classic (USTC).