After the Terra 2.0 proposal, the price of some tokens in the Terra ecosystem has increased significantly

A vote on the Terra 2.0 proposal took place on May 21, 2022, after 24 hours the price of some tokens in this ecosystem increased significantly.

Terra 2.0 Proposal

Terra 2.0 is Terra’s new blockchain. This new chain does not replace the current Terra, but works in parallel. Currently, Terra 2.0 is still being voted on on Terra Station and has not been officially released.

The Terra 2.0 proposal comes out because of the UST loss of pegs that severely affect current Terra. The cause comes from the UST loss of pegs is too large. At the same time, the Mint – Redeem mechanism of UST and LUNA caused LUNA to sell off. Restoring the current UST price is not possible with Terraform Labs, so Do Kwon – Founder of Terra, proposes a new fork chain.

Specifically, when the proposal is approved, the current Terra becomes Terra Classic with the governance coin of LUNC. The new Terra will not have a UST, and the governance coin will be named LUNA.

Along with that, the new LUNA distribution can be found HERE

Impact of the proposal on tokens

Although the official results will not be announced until May 25, 2022, it currently shows that 62% of the votes agree. But time is still long, and there are nearly 80 Validators undecided. So it’s still not certain that the Terra 2.0 proposal is approved

Sorce: Coincu.com
Sorce: Coincu.com

Even so, the announcement of this hard fork also had a strong impact on community sentiment leading to an increase in the price of some popular tokens on this ecosystem. Specifically, at the time of writing, LUNA increased by 87.59%, ANC 81.81%, UST after increasing by 20.9%, now there is a downward trend.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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