We all know that in early 2022 the TerraUSD had lost its peg to the dollar with the collapse of the Terra Blockchain.
Supporters of the failed cryptocurrency venture Terra had voted to renew it without the stablecoin UST. It has been believed that the venture collapsed due to its Stablecoin UST.
The Terra community received overwhelming support from the voters in their efforts to preserve it. As a result, proposal 1623 has now been passed.
To rescue the ecosystem from the Luna crypto crash, the Terra Blockchain is set to inaugurate its new iteration with the name Luna 2.0 or Terra 2.0. Following this launch, a Luna coin will also be launched.
But people are eager to know what after the launch of the new Luna coin will happen to old Luna. In this write-up, we will be furnishing all the details provided by the community about the fate of the old Luna coin.
What Is Luna Classic?
Luna Classic refers to the left-behind old Luna coin. The Luna coin was launched on May 28, although it existed earlier also.
Terra has announced on Twitter the launch of its new chain and has also provided sufficient information about Luna Classic.
The old Luna coins will not completely disappear from the market. The coin Luna Classic will exist together with the newly introduced Luna coin.
A 6.5 trillion circulating supply of the old Luna will be carried by Luna Classic (LUNC). The coin has been made available for purchase on several crypto exchanges, including FTX, Binance, etc.
The new chain of Terra will be known by the name Terra, while the old one will be called Terra Classic.
The use of the term ‘Classic’ can be said to be a marketing strategy of the developers as it is a reference to the 2017 Ethereum Classic split.
A part of the one billion newly launched Luna coins will be provided to the owners of the Luna Classic and UST. With the distribution, Terra blockchain will become a chain owned by the community.
The people who held Luna before its downfall will be allocated 35% of the new Luna coins, while 25% of the new coins will be provided to the current or after-collapse Luna and USD holders.
What Will Happen To Old Luna (Luna Classic)?
For now, the two coins will co-exist. Earlier May, 2022 the old Luna coin became practically worthless. The old Luna coin will now be renamed Luna Classic.
So from now onwards the old Luna Coin will be marketed under the ticker LUNC. Besides, the new coin of Terra 2.0 will be exchanged under the ticker LUNA.
To generate interest in the new Luna coin and for promotional purposes, the new Luna coin will be given for free to those people who will be having the TerraUSD and to the existing owners of the old Luna coin.
Also Read:
- Luna Classic Burn
- How Much Will Luna 2.0 Be Worth?
- Luna 2.0 (Terra 2.0) Airdrop Binance
- Can Luna Classic Reach $1?
Conclusion
The old Luna is replaced with Luna Classic (LUNAC) and Luna 2.0 will be available in market as LUNA. Old Luna will not disappear completely and will be available on some exchanges under name Classic Luna (LUNAC).
The cryptocurrency market has been trembling deeply with the massive Luna crash. It has seen a loss of sixty billion dollars.
With the help of some complex engineering, the algorithmic stable coin UST or TerraUSD was created to uphold its dollar value through the destruction and creation of Luna and TerraUSD.
A few weeks ago, UST failed to maintain its dollar value and triggered the collapse of the Terra community.
But after the announcement of the launch of the new Luna coin and regarding its distribution among the existing Luna Classic holders, Luna showed a rise of more than 20 percent on 25 May 2022.
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