In an attempt to recover from the LUNA crash that happened a couple of weeks back, the co-founder of Terra Luna, Do Kwon, put forth a recovery plan by announcing the launch of Luna 2.0, on May 16.
With the genesis block of this new blockchain, Terra plans to preserve its network & community, as the Terra blockchain forks into Terra 2.0. About 65% of the votes from the community were in favor of this decision, with only 13.2% standing in opposition.
The tokens of this new blockchain are to be distributed through an airdrop scheduled on May 28th, 2022 at 06:00:00 GMT.
As the airdrop date approaches near, an increasing number of exchanges are joining to support the token. Many, such as Binance, Huobi, and FTX have already agreed to participate in the airdrop.
Follow along as we explore how LUNA airdrop is supposed to play in action.
What is Luna 2.0?
Luna 2.0 is the token of the new Terra blockchain that will go live on 28th May.
The new Terra blockchain is supposed to replace the existing Terra blockchain, and Luna 2.0 to replace the current Luna token. Unlike its predecessor, the new Luna 2.0 will no longer work in alignment with the TerraUST stablecoin.
Additionally, many features of the Terra blockchain will be replicated with the new blockchain as well. Along with that, decentralized applications on the previous Terra blockchain will be allowed to migrate to the new one effortlessly.
After the launch, the current Luna will be referred to as the Luna Classic, or LUNC; and the new one as Luna. The same goes for UST.
And although the new blockchain is referred to as a replacement for the current one, the original Terra blockchain isn’t going anywhere. It will coexist with the current one, and will be known as the Terra Classic.
Buy LUNA on eToro
Your capital is at risk.
LUNA Airdrop
In an official blog post, Terra explained the distribution of Luna tokens to existing users in the following manner.
The percentage allocation of the total supply -1 Billion – is to be done as follows.
- Pre-attack Luna holders: 35%
- Post-attack Luna holders: 10%
- Pre-attack aUST holders: 10%
- Post-attack UST holders: 15%
- Community Pool: 30% (with 10% for developers)
Each category will receive tokens in the following ratio- with the RHS representing the fraction of coins per coin held previously.
- Pre-attack LUNA – 1 : 1.1
- Pre-attack aUST – 1 : 0.033
- Post-attack LUNA – 1 : 0.000015
- Post-attack UST – 1 : 0.013
As the genesis block goes live, users will receive 30% of their share immediately while the rest 70% will remain vested.
The outstanding tokens will be issued over the course of 2 years, starting after the 6th-month post-launch, with an issue of 3.9% each month.
However, the tokens won’t be liquidable immediately. In order to maintain network security, all the airdropped tokens will be staked automatically. The rewards on the staking, however, can be claimed anytime as per the investors’ convenience.
If you, as a user, wish to liquidate your Luna on the very first day of your cliff, you’ll need to undelegate your staked Luna at least 21 days before the date.
Supporting Exchanges
Binance, the biggest crypto exchange by volume, will be participating in the Luna airdrop. The tokens will be distributed to users in the same format as proposed by Terra.
Along with the soon to be launched Luna, Binance will host Luna Classic on its platform as well. The token will, however, be available for trade starting May 30th.
Binance announced this partnership in a tweet that said “The Terra community just passed a vote to ‘Rebirth Terra Network’. We are working closely with the Terra team on the recovery plan, aiming to provide impacted users on Binance with the best possible treatment.”
Other exchanges, such as Crypto.com, ByBit, Bitrue, FTX, Coinbase Kuber, Gate.io and many others joined hands in supporting the airdrop. The list also includes Kraken- which is a US-based crypto exchange that announced their collaboration in a tweet. Kwon retweeted this tweet appreciating the support from the exchange.
In all this positive light, Coinbase has managed to keep its distance from this much-anticipated airdrop. The exchange had announced the suspension of the Terra tokens from its exchange last week, and as of now, has planned to suspend trading of WLUNA as well. At Least, for now, the possibility of Coinbase listing Luna anytime soon does not look apparent.
Luna 2.0: Will the Price Match its Previous Records?
As the launch nears, the market hosts a lot of speculation and anticipation about the price of the Luna token, to be launched on the 28th.
Technically, no one is in a position to decide the price of Luna, as it’ll be a result of market sentiment and adaptability to the new token. With that being said, there are multiple ways “analysts” on the internet have predicted the Luna price.
The model used by most internet analysts predicts the price of Luna in the following manner.
The market cap of Luna closed at $26 Billion before the Terra crash. The price of a single token on that day was roughly $73, with 350,000,000 coins in circulation.
Luna 2.0 is to have a market supply of 1 Billion, almost three times the size of Luna before the hyperinflation. According to this, if we take the $26 Billion market cap to be consistent across the new blockchain, the price of the new Luna token falls to around $25.5.
With that being said, there’s very little chance the price of Luna borders anywhere near that number.
Since the crash, the market sentiment & reputation of Terra among investors and its own community have been compromised. There is a serious lack of interest in the project from previous community members, and Terra will have to work much harder to get them on board, eventually.
And therefore, keeping a realistic vision in mind, the logical number of expectations for Luna’s price lies somewhere between $2-$5. However, this is speculative, and in no way a guaranteed prediction. Forums online have predicted the price to be as little as $0.2, to as high as more than $100.
As an investor, you must be rational when expecting Luna to launch at a certain price.
Read More
in-content-heros name=”defi-coin”]
Credit: Source link
