An overwhelming majority of the Terra community has voted against CEO Do Kwon’s proposal to fork the blockchain.
Community Rejects Fork
Terra community members participated in a preliminary voting round at Terra’s research and governance forum over Do Kwon’s proposal of forking the LUNA blockchain. Out of the 2,747 votes cast, only 10% voted in favor of the fork. An astounding 90% of the voters opposed the move, indicating a clear voice of the community at large. The voting was a preliminary round conducted to gauge the general sentiment towards the LUNA fork. The community will formally start voting on the matter on May 18. But there is doubt if much will change till then in the community.
Do Kwon’s Proposal
It all started when UST lost its stablecoin peg, which kicked off a domino effect on the entire Terra ecosystem. This resulted in the market being flooded by the LUNA token, which dropped 99% in its value to less than a dollar. The proposal seems like a last-ditch effort by Terraforms Labs CEO Do Kwon to gain some semblance of control over the situation. The devastating market crash that brought down the entire Terra ecosystem has left investors and community members scrambling in the aftermath. Although most members are in favor of a LUNA token burn, Do Kwon has proposed splitting the LUNA blockchain into Terra Classic and Terra, hosting the Luna Classic (LUNC) and Luna (LUNA) cryptocurrencies, respectively. The new chain would entirely remove the UST stablecoin and just focus on DeFi applications. Meanwhile, the existing chain would continue as Terra Classic, and holders of LUNA on this chain would receive an airdrop of the LUNC token.
Forks Don’t Work
Several industry experts also have spoken out against the forking proposal. Binance CEO Changpeng Zhao tweeted,
“This won't work…Forking does not give the new fork any value. That's wishful thinking. One cannot void all transactions after an old snapshot, both on-chain and off-chain (exchanges). Where is all the BTC that was supposed to be used as reserves?”
The community is mostly hoping that the fork idea is abandoned in favor of the burn method, as they believe that it will bring LUNA back into the list of top 10 cryptocurrencies by market cap, purely powered by the attention it has garnered.
On the other hand, the South Korean parliament has summoned Do Kwon to a hearing to explain the intricacies of the situation.
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