The co-founder of Terraform Labs, Do Kwon, has announced a governance proposal to fork the Terra Luna blockchain to help restore the network.
The new chain will reportedly not be connected to TerraUSD, and the existing Terra blockchain will continue to exist, renamed Terra Classic, LUNC.
The proposal suggests that new LUNA tokens will be airdropped to LUNC holders, the UST holders, and the developers of the Terra Classic blockchain. The fork will be live on May 27 if the plans sail through.
The expected supply of LUNC will be limited to 1 billion, where 25% will be for the community pool, 5% for the essential developers, and 70% for LUNC and UST holders with vesting conditions.
The Luna Foundation Guard, a non-profit entity engaged in the development of Terra, revealed that it’s used most of its reserves to restore the UST peg and will need external sources to maintain the blockchain.
Binance CEO Changpeng Zhao recently announced that he might support the Terra community but demanded that the platform enhance transparency.