Do Kwon talked about his plan to rebuild Terra’s blockchain in the form of a “fork”. He submitted his proposal to the vote of his he community, which will take place on Wednesday.
He wants to save the Terra blockchain. On Monday, Do Kwon, the boss of the Terra blockchain, came out of his silence and talked about his plan to rebuild his weakened ecosystem, following the collapse of his algorithmic stablecoin terra usd (UST) and that of the cryptocurrency luna in a context of strong turbulence in the cryptocurrency market.
On Monday, in a lengthy Twitter thread that began with a “Terra is more than the UST”, the latter posted a proposal to rebuild its blockchain, titled “Terra 2 essence recovery plan”. “Terra’s application ecosystem contains hundreds of developers” and “state-of-the-art infrastructure,” the latter assures.
What Do Kwon proposes is to create a “fork” of its blockchain, that is a modification of the basic rules that have made the essence of this blockchain. The proposal will be submitted to the vote of his community tomorrow.
A new blockchain without UST
Since the collapse of the UST and the cryptocurrency Luna, attempts to save the Earth blockchain have been in vain. Additionally, the Luna foundation, which oversees Terra’s blockchain, has seen its cryptocurrency reserves melt like snow in the sun, when they should have protected it in the event of a problem with the ecosystem. In this context, Do Kwon had no choice but to come up with a contingency plan, hence his fork proposal.
What would such a fork look like? On the one hand, the Terra blockchain will keep the name Terra while the old blockchain would be renamed “Terra Classic”. The two blockchains will be able to coexist. Terra will be developed without UST and will offer a limited amount of cryptocurrency luna, one billion units. The fork provides for the redistribution of the moon cryptocurrency to investors and developers who were present before or after the collapse of the moon, according to a specific distribution plan.
“The luna token will be distributed to Luna Classic holders, UST holders and Terra Classic core application developers”, clarifies Do Kwon.
Furthermore, network security will be “encouraged”, with the aim of an annual bonus of 7% for those who “staking” (which provides for a remuneration for the supply of their tokens).
Bitcoin blockchain fork
A blockchain fork is not a new phenomenon. Recall that, a bit like a digital book, the blockchain brings together all the blocks (batches of transactions) of a network, from the oldest to the most recent. The two best known blockchains are Bitcoin (and its own bitcoin cryptocurrency) and Ethereum (and its own ether cryptocurrency).
Each blockchain has its history, its cryptocurrency, its security rules … But it is possible that at some point in its history, the blockchain undergoes a fork, or a change in the elements of the rules that made the essence of this blockchain. The fork can have several implications: add a functionality, strengthen the security of this blockchain … For example, in 2017, the Bitcoin blockchain underwent a fork that led in particular to the appearance of a new cryptocurrency: bitcoin cash.