[UPDATED] “Terra is more than $UST”: Do Kwon Plans to Revive Blockchain From LUNA’s Ashes

Update (19/05/22, 13:01)

Terraform Labs CEO Do Kwon has opened up the vote for approving his revival strategy. Earlier this week, Kwon had proposed that the old chain would be renamed to Terra Classic with token Luna Classic (LUNC) and the new chain would called Terra with token Luna (LUNA).

On Wednesday, Kwon announced the vote via Twitter. “Terra governance prop #1623 to rename the existing network Terra Classic, LUNA Classic ($LUNC), and rebirth a new Terra blockchain & LUNA ($LUNA) is now live,” he tweeted.

At the time of writing, 77.08% have voted in favour of the move, 1.44% are abstaining, 0.35% voted against, and 21.13% voted no with veto. So far 143.43 million have voted in the week-long poll. In order to vote, LUNA holders must connect their wallet through Terra Station or XDEFI Wallet.

Meanwhile, Terraform Labs is reportedly liable to pay the South Korean government 100 billion won (US$78.5 million) for tax evasion. Kwon has been charged with failing to pay corporate tax and has said he plans to liquidate the company and relocate to Singapore due to the tax policies.

The National Tax Service has investigated Terraform Labs and also announced a 4.66 billion won income tax fine on Terra Virgin – a wholly-owned Terra Singapore subsidiary. The tax service discovered that Kwon and Terra Virgin had sent free LUNA to Singapore-established LFG.

Kwon allegedly attempted to flee Korea and liquidate the company on 4 May and 6 May before the LUNA crash.

Update (17/05/22, 11:43)

After a week of turmoil for LUNA, Kwon has proposed a revival strategy that would utilize the Terra blockchain’s code.

In a blog post and a Twitter thread, Kwon revealed how the new network would retain the “Terra” name but would not feature TerraUSD (UST). “Terra is more than $UST,” Kwon wrote. “$UST peg failure is Terra’s DAO hack moment – a chance to rise up anew from the ashes.”

Read More: RIP LUNA – Stablecoin Dies Less Than a Week After TerraUSD Depegs

The old chain will be renamed Terra Classic with the token Luna Classic (LUNC), whilst the new chain called Terra will once again use token Luna (LUNA). Holders of LUNC will receive an airdrop of the new chain’s token, Kwon said.

Kwon added that the new chain will be “fully community owned” and Terraform Labs’ wallet will be removed from the whitelist for the airdrop.

If voted through by token holders, the network could launch as early as 27 May 2022. Voting begins on 18 May 2022.

The move marks Kwon’s second proposal to revive the broken network. Kwon had previously suggested a tiered repayment system for the first batch of users. The proposal has since been edited to include all wallets. “Instead of paying out just small wallets, we will pay out all wallets, including whale wallets, up to a set cap per address,” Kwon wrote.

Read More: Did Do Kwon’s Arrogance Cause Terra’s Downfall?

In a tweet on 14 May 2022, Kwon also said the Luna Foundation Guard (LFG) would dip into its Bitcoin reserves. “We are currently working on documenting the use of the LFG BTC reserves during the depegging event,” he tweeted.

Acording to Business Times, US$2.9 billion in crypto reserverse was used since 7 May 2022 to stabilize the token.

Over the weekend, screenshots of a police report in Singapore filed against Do Kwon were circulating on Twitter and Reddit. However, whether the report is real or if the police are actually investigating Kwon are yet to be verified.

Nonetheless, it has been widely reported that Do Kwon’s wife sought police protection following the LUNA fallout.