What is Terra 2.0? How To Buy LUNA 2.0 Tokens?
Before moving to what is Terra 2.0? First let’s have a look at what really happened with Terra (LUNA):
The Renowned Crash!
The algorithmic stable coin UST, which is built on top of the Terra protocol and is a driving force behind its entire ecosystem, lost its peg on May 9th.
The algorithm’s operation allowed traders to exchange 1 UST, which was trading below $1, for 1 LUNA. This plan was created with the intention of destroying the UST and reducing its supply, which should have increased its value. However, there was a lot of selling pressure, and UST never came close to hitting its $1 target.
This step has enabled dealers and traders to print LUNA in the large quantities, which resulted in the tremendous supply of over 6 trillion LUNA in just few days. Needless to say, such rapid supply of growth in such a short period of time, with no ability to absorb it, that resulted in the unavoidable-LUNA’s price plummeted to $0.
In that shocking incident which will be evergreen for the entire crypto industry. The entire Terra ecosystem was wiped out and billions of dollars vanished from the market in less than a week.
That has paid a lot of impact on the crypto industry as well as Terra Luna.
Now let’s see what is Terra 2.0?
The CEO of Terraform labs Do Kwon after experiencing and analysing the situation has proposed a Terra Luna hard fork to rebuild the ecosystem. Where the Previous Terra blockchain was splitted into t5wo blockchains. And the current chain and the new chain would exist at the same time but will operate differently.
Terra aims to become a community-owned blockchain. While the Airdrop whitelist would be updated to remove Terra Form Labs and Luna Foundation Guard (LFG) from the wallet addresses.
The Terra team therefore intends to build a new chain without the algorithmic stable coin based on “Proposal 1623”. In other words, they’ll maintain Layer 1 technology and stay away from the stable coin approach that triggered the LUNA death spiral.
After many discussions the community has finally voted in the Favor of the proposal.
Following the hard fork, the old chain has been renamed as Terra Classic (LUNC) and the new chain referred as Terra (LUNA). Where the CEO Do Kwon gave an idea of how the blockchain would work and stated that the new Terra will be created without the algorithmic stable coin.
How To Buy Luna 2.0 Coin?
Luna 2.0 has been the subject of rumours since its launch, and one of the rumours is also because of its cost; within just a few hours after the token’s introduction, its value plummeted by 60%. Let's deep dive into it more….