Recently Terra (LUNA) had one of the worst crashes where the price bottomed below $1 along with the blockchain’s stablecoin, UST which got de-pegged. This price action by Terra affected the whole crypto market.
However, after the collapse, the Terra community has been working on the revival plan and the majority of the vote received by the community is in favor of the hard fork.
Three Elements Of Terra’s Proposal
The Terra blockchain has now published an amendment to the proposal 1623 and has made three important revisions after receiving the community feedback
Genesis Liquidity Being Increased
While increasing the Genesis Liquidity, the Terra looks forward to protecting the small wallet holders, the one who was holding LUNA before the attack. So according to Terra, the initial liquidity parameters have been increased from 15% to 30% for pre-attack UST holders, post-attack LUNA holders, and post-attack UST holders.
New Liquidity Profile For Pre-attack LUNA Holders
With this plan, the wallets that have less than 10k LUNA will have the same genesis liquidity which is 30% unlocked at launch. The next 70% liquidity will be opened only after two years with the duration of every 6 months.
According to Terra’s statement, introducing this new liquidity profile will make sure that small LUNA holders will have similar initial liquidity profiles. Now, this initiative will cover 99.81% of LUNA wallets which will only represent 6.45% of total LUNA during the pre-attack time.
Decreased Distribution For Post-Attack Holders
It has been decided by Terra that the distribution for post-attack UST holders will be reduced from 20% to 15%. Through this plan, the de-peg-related distribution will stay with the original stakeholders.
Furthermore, with just a 5% change from decreasing the distribution to post-attack UST holders, will be allocated to the community pool. Terra’s voting for proposal 1623 will end in the next 5 days.