After the insane series of events with LUNA and UST causing the recent collapse of the crypto market, everyone is upset at Terra (LUNA) founder Do Kwon. Do Kwon is currently facing legal inquiries worldwide, and has garnered the attention of many legislators. The normal response to this type of pressure would be to slink out of the public eye and let things cool down a bit.
So this Friday, Do Kwon and Terraform Labs launched LUNA 2.0. That’s real, this isn’t The Onion. The framing of the LUNA team has always been that the collapse was caused by an attack on the blockchain. Using that stance, they’ve justified relaunching with a blended snapshot distribution strategy. Terraform Labs announced on Friday that they captured a pre-attack snapshot and a post attack snapshot of LUNA and UST holders, and the airdrop distributions would be based on holdings at the time of these snapshots.
The new token is coming along with a wide range of support from exchanges, including Binance, FTX, Huobi, Kraken, KuCoin, Bitfinex, and more. The entire distribution schedule is complex, but the short of it is multiple scheduled drops along with vesting. The genesis block of LUNA 2.0 has already happened, so the new chain is live and the first wave of token airdrops has occurred.
The group has dubbed tokens from before the “attack” as LUNA Classic and Terra Classic, while new tokens are identified with 2.0. Coinciding with the launch of the Terra 2.0 blockchain, the first DEX, Phoenix Finance, has also been launched. According to the official Twitter account, a number of dApps have agreed to port over.
So far, it’s been a bit of a mess. Exchanges have inconsistent naming for the new token, immediately at launch the token dropped ~70% and is currently trading just over $5 ($18 at launch).
The hard truth about LUNA is that most of its success came from unmaintainable yield rates driving up the demand for its stablecoin. Without the trust in its stablecoin and the unrealistic returns, it’s hard to imagine LUNA being worth anything close to what it was before it’s algorithmic flaws were exposed.