Developers behind failed stablecoin TerraUSD have voted to abandon the token in favor of creating a new blockchain and digital asset weeks after the cryptocurrency collapsed. Under the recovery plan for the Terra ecosystem, developers will create a new Terra blockchain with a revived Luna token.
Unlike most other major stablecoins which are backed by other assets, TerraUSD’s value was derived by complex algorithmic processes, linked to another paired token called Luna. Both tokens have lost nearly all of their value since TerraUSD, known as UST, slipped below its 1:1 peg to the dollar earlier this month.
Under Do Kwon’s newly approved structure, the original blockchain will be known as Terra Classic, while its native token Luna, which plunged close to zero this month, will be renamed Luna Classic with the ticker LUNC.
The new Terra blockchain will start running a coin under the existing Luna name and ticker, and won’t include the TerraUSD stablecoin. “Terra 2.0 is coming. With overwhelming support, the Terra ecosystem has voted to pass Proposal 1623, calling for the genesis of a new blockchain and the preservation of our community,” the tweet stated.