We're now one week on from the new Luna 2.0 coin launch following the restarting of the Terra ecosystem, but what exactly is Luna 2.0?
As Luna seeks to pick itself up following the massive Luna crypto crash, Do Kwon and the Terra team put in place a Luna recovery plan. This plan saw the existing Terra blockchain separate into Terra 2.0, as decided in the Terra Luna vote.
What Is Luna 2.0?
Luna 2.0 is the brand new token of the new Terra blockchain intended to rescue the Terra Luna ecosystem following the stablecoin collapse.
Dubbed the Luna rebirth, TerraForm Labs founder Do Kwon's proposal sees a new chain replace the existing Terra network. Alongside this, Luna 2.0 will replace the existing version of Luna. It has severed ties to the UST stablecoin that saw the crash happen in the first place.
Alongside the new chain, most of the dApps will also migrate to the new chain. Most other features will transfer over, according to Terra.
"Terra 2.0 is bringing the same ideals you fell in love with the first time," it tweeted. "World-class UI/UX, our amazing LUNAtic community, and a deep, talented developer pool poised to build the future of DeFi."
We're now seeing more projects successfully migrate over to Luna 2.0, with Terra sharing several of these updates each day on Twitter.
However, the old chain - and old Luna - won't just disappear, they will co-exist. The old chain will be known as Terra Classic, while Luna Classic will also see the existing Luna continue.
Following the launch, all eyes are now on the Luna 2.0 price. Now a week after its launch, Luna is 66% down from its high of $19.54. After dropping to a low of $3.63, it bounced back, and has remained volatile ever since. Luna's price is now $6.53 - down 10% in 24 hours, with a market cap of $1.3 billion.
Meanwhile, the Luna Classic price has seen a relatively sharp decrease today by 6%.
While the new coin marks a reset for the network, holders and those in the cryptocurrency community won't forget the collapse of Luna any time soon.
Luna 2.0 Release Date
Luna 2.0 released on May 28 during the genesis block for the new Terra chain. It had a launch time of 6 AM UTC (2 AM ET, 11 PM PT), when the first block on the new mainnet, known as Phoenix-1, was produced.
This date was pushed back one day by Terra, who in the original plan said this would launch on May 27.
Snapshots for the airdropping of coins took place at Terra Classic block 7790000 on May 27.
Speaking after the launch of the Terra 2.0 mainnet, Terra said: "Today marks the beginning of the next chapter for the Terra community. One in which our potential knows no bounds & our collective creativity can flourish."
However, this might not be it for new coins on the Terra 2.0 network. According to one rumour, a new stablecoin we're coining UST 2.0 is reportedly being planned.
Luna 2.0 Airdrop
Existing Luna holders were allocated Luna 2.0 via an airdrop at the new Terra chain's launch. This happened in the first block of the new chain on the Phoenix-1 mainnet.
With a supply of 1 billion, the airdrop allocations are 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) controlled by Luna stakers.
Not all the 1 billion Luna will be available at launch. A large majority of this will be vested until at least six months after the new chain releases. A reported 210 million coins are currently in circulation.
However, the Luna 2.0 airdrop is reportedly suffering from some distribution issues. Terra has acknowledged some holders did not receive their expected allocation, and has vowed to create a solution.
The TerraForm Labs wallet was removed from the whitelist for the Luna airdrop event. This is intended to ensure Terra becomes a "fully owned community chain". The LFG wallet was not on the whitelist.
Several cryptocurrency exchanges also supported the airdrop and subsequent transition to a new chain.
In a statement on May 25, Terra said "we are proud to be working closely with CEX partners" to support the airdrop. While this confirmed the Binance's Luna 2.0 support, this is happening in a more muted way, given its listing in the Innovation Zone from May 31.
Luna 2.0 holders can view their balance by going to Terra Station and selecting the mainnet network.