Will Terra 2.0 bring the investors back onto its platform?

Highlights

• The Terra 2.0 proposal plan has got the nod from the Terra ecosystem with a new blockchain suggesting that it will not include algorithm-backed stablecoin UST.
• In a blog, Do Kwon had stated that it will be discontinuing its old algorithmic stablecoin and the new one will be rebranded as Terra Classic.
• Called the Terra 2.0 and the new chain is expected to be launched on 27 May. 

Ever since the Terra Luna fiasco shook the whole market, Terra founder Do Kwon has been under tremendous pressure to revive its lost reputation. Do Kwon’s initial proposal was rubbished on 14 May, wherein he had suggested the forking of the token.

In the new Terra 2.0 plan, the founders have suggested that it will not include algorithm-backed stablecoin. The proposal has got a nod from the Terra ecosystem. It will be called the Terra 2.0 and the new chain is expected to be launched on 27 May.

The amended proposal got a nod following a vote, which got overwhelming support with almost 66% agreeing to the new proposal. Terra ecosystem on its Twitter account posted that Terra 2.0 is coming.

It further added that the focus of the new blockchain will be the preservation of the community.

What is Terra 2.0?

The Terra 2.0 revival plan is all about taking a fresher approach, especially abandoning stablecoin TerraUSD or UST. That would mean a complete restart of the Terra ecosystem and founder Do Kwon, in a blog, stated that it will be discontinuing its old algorithmic stablecoin and the new one will be rebranded as Terra Classic (LUNC), and the new chain to be called Terra (token Luna - LUNA).

The Terra ecosystem added that LUNC token will be airdropped to the LUNA Classic holders, app developers of Terra Classic, and remaining UST holders.

Besides, Do Kwon laid special emphasis on the Terra community and said that they will work hard to win back the community's faith in decentralised stablecoin TerraUSD.

He emphasised that UST remains the central narrative of Terra's growth and aims to rebuild the chain with validators focussing on resetting the network back to one billion tokens.

Many experts believe that LUNC could provide them with resistance against such incidents, which could also give them better control over their systems.

Exchanges line up to list LUNC

Post the Terra 2.0 announcement, leading exchanges, such as Binance, Huobi are queuing up to list the token on its platform. Binance on its Twitter account said that they are in discussions with Terra’s developers about the possible launch of the new token.

Similarly, Huboi too has showcased its interest in listing the token on its platform.

How is the market reacting? 
The news has certainly given the much-needed push to the TerraUSDT protocol. The token was witnessing a massive gain of 46.10% at the time of writing and was trading at US$0.103083 with a 24-hour trading volume of US$21,76,90,087. Volume-wise too, it was up by over 300% in the past 24 hours.LUNA token, on the other hand, had spiked more than 20% on Wednesday, but on Thursday it is down by 0.90% and was trading at US$0.000168 with a trading volume of US$87,49,46,229 over a day. 

Overall, the crypto market will be waiting with bated breath to see the eventual outcome of Terra 2.0, but it will hope it can revive the Terra ecosystem and see the confidence back in the protocol going forward. 

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