Terra makes changes in its revival plan following UST depegging

After two weeks of pain, Terra project's staff has announced changes to their projected LUNA and UST resurrection plans.
After two weeks of pain, Terra project's staff has announced changes to their projected LUNA and UST resurrection plans.

After a devastating two weeks for the Terra community, the project’s team has announced changes to their projected LUNA and UST resurrection plans.

Notably, Do Kwon brought a suggestion to bring a completely new chain which saw a severe backlash from the Terra community, as TheCoinRise reported.

Change in LUNA and UST distribution

Terra announced three important changes to the proposed Terra restoration and redistribution plan after incorporating the community’s feedback since its publication two days ago.

According to the announcement, these three are the key amendments to Proposal 1623:

  1. Increasing genesis liquidity: For pre-attack aUST holders, post-attack LUNA holders, & post-attack UST holders, the initial liquidity parameters would be modified from 15% to 30% to increase token supply during the launch and minimize potential inflationary pressures in the future.
  2. Introducing a new liquidity profile for pre-attack LUNA holders: The company has decided to offer the same genesis liquidity to wallets with less than 10,000 LUNA as the above groups (i.e., 30% unlocked at launch). The remaining 70% vested over two years with a six-month cliff. Small LUNA holders will have similar initial liquidity profiles thanks to the introduction of this new liquidity profile. This would cover 99.81% of LUNA wallets while only accounting for 6.45% of the total LUNA at the time of the pre-attack snapshot.
  3. Decreasing distribution to post-attack UST holders: To guarantee that the de-peg-related allocation is on par with the initial stakeholder (pre-attack LUNA) allocation, the allocation for post-attack UST holders has been reduced from 20% to 15%. The community pool will get the remaining 5% gap from reducing the distribution to post-attack UST holders.

The announcement ended with the company informing about the voting on the proposal that is going to end in five days. Terra community seems devastated by the event with many losing all their savings and funds in the failed LUNA/UST model.