Terra Community Strongly Opposes Do Kwon’s Fork Proposal - 90% of the participants in the preliminary vote opposed Do Kwon's fork proposal.

    Last week, stablecoin TerraUSD (UST) lost its peg to the US dollar, bringing the whole market down, especially its related token Luna. Due to the way the two interacted, it led to a massive increase in the supply of Luna, and its price has dropped to almost zero. Amidst the wreckage, Terraform Labs CEO Do Kwon has launched a revival plan that will fork Terra into a new chain without the algorithmic stablecoin.

    Fork is a term used for changing the structure of a blockchain. In this case, it would be a very important change like starting from scratch. Do Kwon’s revival plan proposes to fork the Terra chain into a new “Terra”’ with token “Luna” while the old chain would become “Terra Classic” and the original Luna tokens would become “Luna Classic” (LUNC). The new Luna would be airdropped to Luna Classic holders, stakers, Terra holders and app developers of Terra Classic. The intention is for the chain to be “community-owned” and target a 7% inflation rate through staking rewards.

    While the official governance vote will begin on May 18th EST, the Terra community seems to be against this idea. 90% of the 1000+ Terra community members voted against the fork proposal. While this poll is not an official governance vote and does not require holding Luna tokens to vote, it gives a strong indication that the community is reacting negatively. That said, it’s very possible that Terraform Labs and the large Luna holders could push a governance vote without the support of the community.

    An informal vote on Twitter today also showed a similar result to the poll on the Terra forum. It asked the Luna community if they wanted to fork Terra or burn Luna tokens. It received just over 800 votes, with 93% in favor of a burn. 

    However, there are still some members of the Luna community who are supporting Kwon’s proposal. Posting on Twitter, staking provider BTC.Secure said it supports the launch of the new blockchain and was backing Kwon.

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