Terra Backers Are Launching a Revival Plan After The Crypto Lost 99% of Its Value

Terra Luna
Terra Luna

Terra backers are holding a revival plan to save the cryptocurrency without the pegged stablecoin that caused it to lose 99% of its value. 

“With overwhelming support, the Terra ecosystem has voted to pass Proposal 1623, calling for the genesis of a new blockchain and the preservation of our community,” Terra’s official Twitter account posted Wednesday. 

According to the proposal, a new blockchain will be created, a shared ledger of transactions. 

Earlier in May, terraUSD, a supposedly stablecoin, plummeted below its $1 peg. Consequently, investors rushed to sell Luna, resulting in a dramatic price plunge.

Under the new proposal, Terra plans to distribute tokens to holders of the old luna — soon to be renamed “luna classic” — and UST tokens.

Roughly 30% of coins will be sent to a pool of investors in the Terra community; 35% will go to luna holders before the token lost most of its value; 10% to pre-collapse UST holders. An additional 25% of tokens will be allocated to traders who still own luna and UST after the crash.