By Alicia Maher
Part of the proposal states that the Terra team will airdrop LUNA tokens to eligible holders on the Terra 2.0 network. After this update became public knowledge, the trading volume of Terra network’s stablecoin (UST) rose significantly.
Details About Terra 2.0 Launch
65.5% of 200 million voters favored the Terra 2.0 launch. 13.2% were against it, and 20.98% didn’t vote. After the launch of Terra 2.0, the current Terra blockchain will no longer exist and will be known as the Terra classic.
The Terra team also announced that it wouldn’t issue a stablecoin on the new chain. According to them, efforts in maintaining the peg of the stablecoin were one major factor that caused the crash of the Terra network.
Per the announcement, the Terra 2.0 mainnet will be live on May 27. Once this mainnet is live, trading can commence on LUNA 2.0 tokens. Following the announcement, top exchanges have indicated support for the launch of LUNA 2.0 tokens. Bitrue, Bybit, Binance, and Huobi are among the exchanges that have stated that they will assist in dropping the LUNA 2.0 tokens on Friday.
UST’s Price Surged By 44% Within 24 Hours
According to the current Coinmarketcap data, UST trades at $0.087099. UST’s trading volume also shot up by 330% in the last 24 hours and currently stands at $239M. The announcement clarifies that current LUNA and UST holders will receive free token airdrops of the new Terra chain.
The current token amount of any holder will determine the amount of token airdrops such holder will receive in the new Terra chain. The proposal also states that the community will receive 30% of the token’s total supply circulation. The amount tokens held before and after the collapse will also determine the token airdrop amounts they will receive.
Pre-collapse LUNA holders and post-collapse LUNA holders will get 35% and 10% of the airdrop, respectively. However, pre-collapse UST holders and post-collapse UST holders will get 10% and 15% of the announced airdrop.
LUNA’s Trading Volume Soars By More Than 65% In 24 Hours
The trading volume of Terra’s native token also surged by more than 65% in the last 24 hours. It is at $969m, according to the latest Coinmarketcap data. The price of this token hasn’t moved significantly like the price of the UST. However, its overall evaluation is still more than $1.01B.
The Terra team also stated that they would want to partner with the top crypto exchanges when launching the tokens on the new chain. It also announced that the Terra validators would automatically vest the airdropped LUNA tokens.
The reason is to avoid any security loopholes. Holders of the vested LUNA can stake their tokens and earn rewards. More importantly, they are free to redeem their rewards at any time they choose.