Terra Builder Alliance has submitted a groundbreaking proposal to the Terra community, suggesting a network restart and issuance of a new LUNA token. This strategic move aims to stabilize the ecosystem following recent challenges.
Key Allocation Structure
The proposed distribution for the new LUNA token includes:
- 40% to Luna stakers (as of May 9, 15:00 UTC) - Rewarding core ecosystem supporters
- 40% to UST holders - Recognizing their crucial role in the previous network
- 10% to edge Luna holders - Compensating those affected by recent market changes
- 10% to ecosystem developers - Supporting DApps, service providers, and infrastructure builders
Implementation Process
- Network Pause: The alliance recommends temporarily halting blockchain validation
- Community Discussion: Detailed distribution mechanisms will be finalized through democratic deliberation
- Rebuilding Phase: Validators will propose comprehensive revival plans
👉 Discover how major exchanges are supporting Terra's recovery
Critical Timeline Events
- May 13, 2022: Terra blockchain halted at block height 7,607,789
- Proposal Submission: Forward-looking plan presented same day
FAQ Section
Why allocate 40% to UST holders?
UST holders formed the backbone of Terra's previous ecosystem, making their inclusion vital for equitable recovery.
How will edge holders be identified?
Specific criteria will be established through community governance, likely involving wallet snapshots during critical periods.
What's the expected timeline for new token distribution?
The process may take several weeks as the community evaluates optimal implementation strategies.
Will this affect existing DeFi protocols?
Most Terra-based DeFi applications will require updates to support the new token structure.
👉 Learn about token migration best practices
Next Steps for the Community
- Finalize distribution parameters through governance votes
- Establish transparent tracking mechanisms for allocations
- Develop educational resources for smooth transition
This proposal marks a pivotal moment in Terra's evolution, balancing compensation for affected parties with forward-looking ecosystem growth. The community's collective wisdom will determine the final implementation details.