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The Terra ecosystem has voted to pass Proposal 1623, calling for the genesis of a new blockchain.

LUNA V1 services were suspended on May 26th 13:00 UTC. This includes deposits, withdrawals, and trading.

The old LUNA token will be renamed into TERRA CLASSIC token (LUNC).

The new LUNA token will be called TERRA (LUNA).

TerraUSD (UST) will be renamed to TerraUSD Classic (USTC).

How new Luna Token will be distributed

Details of the token allocation have been modified in the proposal to accommodate community feedback:

  • Pre-attack Luna holders distribution – for all holders with a snapshot balance of 10.000 Luna or less, 30% unlocked at genesis; 70% vested over 2 years thereafter with 6 month cliff. This is to ensure that small Luna holders have similar initial liquidity profiles. This would cover 99.81% of Luna wallets while only representing 6.45% of total Luna at the Pre-attack snapshot.
  • Post-attack UST holders distribution – 20% → 15%. This is to ensure that depeg related allocation is on par with the original stakeholder (pre-attack Luna) allocation. The 5% saved goes to the community pool.
  • Increase initial float: all initial float allocations modified from 15% → 30% to increase initial token float.

Luna will be airdropped across Luna Classic stakers, Luna Classic holders, residual UST holders, and essential app developers of Terra Classic.

What amount of new LUNA Token will I receive?

The amount of LUNA you are qualified to get is decided by the categories of tokens you owned on the Terra Classic chain, the time period during which you held these tokens (based on Pre-Attack and Post-Attack snapshots), and the quantity of tokens you held.

The following are the Pre-Attack and Post-Attack snapshots:

If you meet the following criteria, you will be eligible for the LUNA airdrop:

  • Hold LUNA / UST in the Pre-Attack snapshot (including staking derivatives)
  • Hold LUNA / UST (including staking derivatives) at the Post-Attack snapshot.
Airdrop Eligibility & LUNA Vesting Schedule for Eligible Users

Pre-Attack users with fewer than 10k LUNA (including staking derivatives) or deposited UST in Anchor will receive 30% of the LUNA airdrop immediately, whereas Post-Attack users with any number of LUNA (including staking derivatives), UST, or both will receive 30% of the LUNA airdrop immediately.

Users will not receive the additional vesting LUNA until at least 6 months after LUNA is unlocked at Genesis (this is known as a 6-month cliff). After the user’s cliff, the vested LUNA will be given every block (roughly every 6 seconds) to the same wallet address. If a user wants liquid LUNA as soon as their cliff starts, they must undelegate their staked, vested LUNA at least 21 days before the cliff starts. After the cliff, users can keep their vested LUNA staked to continue collecting staking benefits.

If you’re curious about the reason for the LUNA / UST migration, I have described in another article an external hypothesis behind Luna and UST price crash.

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