Last night Do Kwan, the founder of TerraUSD, published an updated Terra Ecosystem Revival Plan. This plan aims to make whole (compensate) the large majority of users who have experienced severe losses over the last week.
As a TL;DR: Terra will be forked, and all aUST holders will be airdropped a portion of the tokens that result from the fork (we’ll be providing an alternative option for smaller users).
A summary of the plan
- The Terra chain will be forked into a new chain, without the algorithmic stablecoin. The old chain will be called Terra Classic (token Luna Classic – LUNC), and the new chain will be called Terra (token Luna – LUNA).
- Luna will be airdropped among Luna Classic stakers, Luna Classic holders, residual UST holders and Terra Classic’s essential app developers.
- TFL’s wallet (terra1dp0taj85ruc299rkdvzp4z5pfg6z6swaed74e6) will be removed from the whitelist for the airdrop, making Terra a fully community-owned chain.
- A large portion of the token distribution will be put towards:
- 1) providing an emergency runway for existing Terra dApp developers.
- 2) aligning the interest of devs with the long-term success of the ecosystem.
- Network security will be incentivised with token inflation. The target for staking rewards is 7% p.a..
The timeline for the new plan
- 18/05. The new governance proposal will be released.
- 21/05 – Terra Core release will be cut and network launch instructions will be made available to validators.
- 25/05 – Essential app developer registration will be completed.
- 27/05 – A genesis file will created from the final launch snapshot.
- 27/05 ~ The network will be launched.
The snapshot may be scheduled for 27/05/2022 (just before network launch). All users will have until then to ensure they have UST on Terra’s network, and so qualify for inclusion in the snapshot.
What does this mean for you?
For those who are able to bridge their funds to Terra to claim the airdrop, details are below. For those smaller users who are unable to bridge, there will be more information coming in the next few days about another option available to them on DeversiFi.
It is also important to note that whilst 25% of the token distribution is allocated to UST holders, 10% is unlocked at genesis, with the rest vested over 2 years thereafter.
However, within the plan, there is no mention of what will happen to aUST holders on Ethereum. Therefore, it is advised that all users who hold aUST on the platform withdraw back to L1, bridge and then unstake aUST.
How do I get my aUST back to Terra?
- Initiate a regular withdrawal for your aUST. Wait up to 24 hours and then finalise the withdrawal (regular withdrawals are a two-step process).
- Create an address with the Terra Station wallet.
- Fund a Terra address with a small amount of LUNA for gas.
- Go to the Terra Bridge and deposit the aUST to Terra from Ethereum (select Shuttle bridge as Wormhole does not currently support aUST)
- Wait 5-10 mins for the bridging.
- Go to Terra Station, connect your Terra Station wallet and click ‘Earn’.
- Unstake the aUST into UST.
The last few days have been turbulent for the whole DeFi space and have highlighted how one network can shake up the wider ecosystem.
The landscape within this sector is ever-changing and we understand that at DeversiFi, we must constantly adapt and evolve to ensure we stay ahead of our users’ expectations.
We will shortly be releasing a summary of our experiences on the recent events on our blog, as well as a detailed overview of how we will absorb the lessons of the UST de-peg and reevaluate our own strategy moving forward.