Key Takeaways:
- Terra 2.0 launch received over 200m approval votes.
- Crypto exchanges have pledged support to Terra's upcoming relaunch.
LAGOS (CoinChapter.com) — While the entire cryptocurrency industry is still recovering from the major collapse of Terraform Labs tokens, Terra USD (UST), and LUNA, several arguments have emerged over the next step for the blockchain platform.
Some investors who lost their funds have called for the total scrapping of the project. While others have reiterated their support for the revamping of the ecosystem through a “hard fork” mechanism.
However, Do Kwon, Terra’s founder proposed a new idea that would lead to the creation of a new chain. Notably, the new chain will maintain the original name Terra (LUNA), while the old chain will be called Terra Classic (LUNC).
According to the blockchain platform, the new chain will focus on drawing decentralized finance applications (dApps) onto its network. Interestingly, Kwon’s proposal has been approved by the majority of Terra community members through a governance vote.
The blockchain platform via its official Twitter handle disclosed that 200 million people voted in favor of the new chain. While 20.98% abstained from voting.
Terra Users Commit To UST Burning
Meanwhile, in another attempt to revive Terra‘s community a proposal to burn a large amount of UST emerged. In detail, Terra users proposed to burn 1 billion UST from its community pool to rejuvenate the ecosystem.
The proposal emerged following Kwon’s suggestion that a potential solution to the Terra debacle is to absorb the stablecoin supply. As a result, Terra community voted to burn a large amount of UST and the remaining cross-chain UST that’s deployed on the Ethereum blockchain as incentives.
The proposition was introduced and processed in the first week of May but it failed to perform. This was mainly due to a mismatch in the amount of UST in the community pool and the proposal.
The main objective of the burning proposal is to reduce the network’s bad debt and help restore its stablecoin dollar peg. Additionally, another burning proposal on May 20 and at press time it has gathered over 150 million votes in favor of burning the UST supply.
However, Kwon has expressed his disapproval of the UST burning proposal. The embattled Terra founder cautioned the community members against sending LUNA to the burning address.
Crypto Exchanges Express Readiness To Support Relaunch
Meanwhile, several top cryptocurrency exchanges have announced their readiness to support Terra’s upcoming relaunch.
Exchanges including Bybit, Kucoin, Binance and Crypto.com have announced plans to support Terra 2.0 when it launches. Other exchanges that pledged their support include FTX, Huobi, Bitfinex, Gate io, Bitrue, among others.
However, the popular decentralized finance (DeFi) project Lido Finance’s DAO voted against providing support for the new chain.
