A Promise Delivered, Not Yet Full
The rebranded LUNA 2.0 that was widely talked about and expected is finally here. The launch plan got executed while the first block is now on the way. There are now two forms of LUNA; LUNA Classic and LUNA 2.0.
TerraUSD stablecoin is yet to be migrated to the LUNA 2.0 network. That means the only purpose of LUNA, for the time being, is on-chain governance.
More than 70% of LUNA in circulation is either in the community pool or staking. Others are kept for allocation to developers in the future.
The distribution of the new LUNA assets is planned for a global airdrop. All the investors who had UST or LUNA on 7th May and 26th May would benefit. 7th May and 26th May were the days when snapshots of the blockchain were taken.
LUNA tokens are shared with regard to the proposal. The majority of it is going to the community pool and holders before the system collapse.
After the last snapshot on the 26th of May, the UST price fell from $0.11 to $0.02. Since UST has lost its dollar peg since the collapse, its use case is blurry. The same uncertainty goes for LUNA Classic.
Exchanges, LUNA’s Best Allies
LUNA 2.0 has gained the support of a lot of protocols within Terra’s ecosystem. As a matter of fact, a lot of them have since adopted it. Hence, it is apparent that LUNA has a way of rebuilding its market capitalization again.
Most investors will have to wait a bit to get their LUNA airdrop. The distribution to all individuals is coordinated by centralized exchanges.
The market’s focus will now be on how the new LUNA trades over this weekend. It is said that about 30% of the airdrop will be available to trade freely from the first day.
It was earlier reported that the revival plan is to start all things afresh. The old token that collapsed will be known as LUNA Classic. But the new arrival will retain the name of LUNA.
The hope of the market is that the new token becomes the most popular stablecoin. It is, however, feared by analysts that the new strategy might not work. They said giving the new token freely to investors might or might not repair damages.
It is now a question of trust. There are worries if most investors will really want to buy in again.