Terraform Labs CEO Do Kwon’s plan to create a new blockchain “without the algorithmic stablecoin” TerraUSD (UST) has the support of 85 million community votes.
In a proposal opened to the Terra community on Wednesday, more than 91% of votes at the time of publication were in favor of “rebirthing” the Terra network — roughly 85 million out of 93 million, with up to 284 million votes yet to be cast. The proposal needs roughly 188 million votes in favor to pass before the window closes on May 25.
At the time of publication, the biggest validator to come out in support of the proposal is Terra infrastructure provider Orbital Command, holding 1.39% of the voting power. Major validators with more than 2% of voting power have not yet made a decision, including cross-chain stablecoin bank Orion.Money with 8.63%.
The governance proposal Kwon drafted on Monday called for a new chain named Terra not linked to UST, using the token LUNA. The “old” blockchain would continue to support “residual UST holders” and operate under the name Terra Classic (LUNC).
1/ Terra governance prop #1623 to rename the existing network Terra Classic, LUNA Classic ($LUNC), and rebirth a new Terra blockchain & LUNA ($LUNA) is now live.
— Do Kwon (@stablekwon) May 18, 2022
In addition to forking Terra, the proposal, if approved, would airdrop LUNA tokens to “Luna Classic stakers, Luna Classic holders, residual UST holders, and essential app developers of Terra Classic.” Terraform Labs’ wallet would also be removed from the whitelist for the LUNA airdrop, making Terra a “fully community-owned chain.”
Despite the overwhelming approval of the proposal at the time of publication, many on social media seem to be against forking Terra. Some users on the Terra subreddit suggested the network “go with a burn” in an effort to compensate token holders rather than a hard fork.
— Boogie Chompeh (@boogiechompeh) May 16, 2022
Amid the uncertainty around the future of the Terra network, people at Terraform Labs have experienced their share of volatility. According to their LinkedIn profiles, three members of the Terraform Labs’ legal team stopped working for the firm as of this week, and the National Assembly’s Political Affairs Committee in South Korea reportedly summoned Kwon for a parliamentary hearing regarding the volatility around UST and LUNA.