The Terra crash was an unprecedented disaster. The top ten project lost 99 percent in just one week at the beginning of May. The team around the controversial founder Do Kwon now wants to save the cryptocurrency: with the birth of Terra 2, a new blockchain.
The controversial relaunch will take place this Saturday, May 28th. The team compensates damaged small investors from Terra via Aidrop. They get the new token on their virtual wallets. He is said to carry the Terra ecosystem in the future.
We will clarify the most important questions in brief: What will change as a result of Terra 2? Who is eligible for compensation and how do I calculate my shares? Which crypto exchanges support the airdrop? What if I don’t hold my coins on an exchange?
1. What will change with Terra 2?
The new blockchain bears the old name: Terra (Luna). The test network went live on Wednesday, and the mainnet will launch on Saturday. The current blockchain continues to run under the name Terra Classic (LUNC). With the relaunch, the team is parting ways with the algorithmic stablecoin, UST. Its controversial functioning led to the project’s rapid rise – and its crash. You can find out all the background information here.
Do Kwon and his team have to prove that their ecosystem can function without UST. The founder is also threatened with trial in his home country of South Korea. A battle for the developers of the ecosystem has also begun. The Polygon platform is currently wooing them with a “multi-million fund” to switch to Ethereum.
2. How does the Saturday airdrop work?
The exact time of the launch is not yet known, but the process is. All Terra Classic and/or UST owners will have the new Terra token sent to their virtual wallets. Only 30 percent of the total compensation will be distributed on Saturday.
Investors will receive the remainder of the airdrop at regular intervals over the next two years. These tokens are staked in the new network for “security reasons”. Owners are rewarded for staking in the form of newly generated tokens.
3. Who is eligible for the airdrop and how do I calculate my compensation?
On a Medium blog post, the team explains all the financial details of the airdrop. You can read it here.
The team allocates investors according to various criteria. Decisive for the eligibility for the airdrop and the amount of individual compensation is the length of time one held Luna or UST and the amount of tokens.
There are basically two groups: before and after the “attack” on the network, dated May 7 (before) and May 27 (after). All specific details on the conditions can be found in this table from the team.
Some explanations: The “Snapshot” groups the period of holding (Pre or Post-Atack), “Asset Type” the type of token (Luna or UST), “Quantity in Wallet” the number of tokens and “Vesting” the compensation period. “Unlocked at genesis” means that you get tokens directly for the relaunch. “Vested over” means that the remaining tokens are distributed in smaller amounts over a certain period of time. The cliff is the waiting period between the first relaunch payout and later compensations.
Example based on the first line: Anyone who held less than 10,000 luna before the attack (snapshot and quantity) gets 30 percent directly for the relaunch (unlocked at genesis) and 70 percent over two years (vested over) after a waiting period (cliff) of six months.
With this calculator you can calculate your individual case: https://terrarity.io/luna-airdrop.
4. Which crypto exchanges support the airdrop?
According to Terra, these major crypto exchanges are supporting the relaunch: up bit, binance, octopuses, FTX and Gate.io. More could follow in the next few hours. If you hold your tokens on these exchanges, you will automatically get your airdrop. Find out about the respective conditions and the process directly from the stock exchanges. Most have posted information about this on their websites and on Twitter.
5. What should I do if I hold my coins directly on Terra’s wallet?
If you have your coins on the Terra Station Wallet, you don’t have to do anything. It is enough if you register with the same seed in the new mainnet (Phoenix-1) after the relaunch. The seed generates the same address of the old blockchain. Your share of new tokens will be sent there.
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