Remember back in May, Terra’s stable coin UST depegged? Over the course of a few days both UST and LUNA went on a crash unlike anything I’d ever seen in the crypto space.
Once among the top 10 cryptos, then LUNA crashed. On May 6th it was at a high of $83 and by June 15th it was down to $.0004608. It would eventually hit a low of $.00005524 on June 19th.
UST hit a low of $ .007363 on June 18th. The efforts to hold the peg resulted in a glut of LUNA being mined. When the dust settled there was a supply of almost 7 Trillion.
By then the Terra chain had been hardforked into two on May 30th. The original chain, renamed to LUNA Classic (LUNC), and the new chain to LUNA.
The Community Comes Together
I’ve been watching the Terra Classic community as it has rallied around the classic chain. They wanted to see the excess LUNC burned and the chain fixed. It became apparent soon after the hardfork that TFL, TerraForm Labs, that had been responsible for the coding on the Terra chain was going to abandon the classic chain and focus on the new chain.
A fellow named Zaradar and some other devs had other ideas. They formed the nucleus of what has become a decent size group of devs and others working together since May to first reverse engineer the code for the chain, then figure out what went wrong and how to fix it.
They have been operating in a discord called Terra Rebels which has become a gathering point for over 6,000 people. As the devs worked on the code, others went to work contacting validators (like Witnesses) and app owners to talk to them about their plans.
Community Proposals Challenge TFL to Communicate
Proposals were put up to create a 1.2% burn tax on LUNC transactions on the chain and another proposal was put out to re-enable staking that had been halted. There is much work to be done but first the proposals had to pass.
Once they passed, TFL would have a set time to either implement code for the proposals or work with Terra Rebels to accept they code they had been working on. TFL took the latter choice and made contact with Terra Rebels.
The New Code Is Deployed
Over the last week the new code was released to the validators to upgrade by today when the block would be reached to trigger the new code. They needed 66% of them to upgrade to get consensus. They surpassed it.
About 30 minutes ago staking was re-enabled on the Terra Classic chain. The price of LUNC has been moving up over the last few days. Right now it sits at $ .0001285.
The mechanism for the burn tax is now present in the code awaiting the outcome of another community proposal to establish the rate.
The header on this post is a screen shot from this video from Happy Catty Crypto. He has been keeping the community updated about what is going on.
Several Dapps have already announced their willingness to implement the tax on transactions inside their apps. Last I checked there are 88 active validators and over 70 Dapps either up and running or planning on settling on the chain.
Happy Catty Crypto did an interesting interview with Zaradar and EK826 a few days ago. There is some interesting conversation about where Terra Rebels would like to see LUNC go.
After watching Zaradar over the last few months, I think LUNC is fortunate to have his very clear vision on what they are building there. It's no wonder a good team has formed around him.
My Thoughts On How Things Look
As I’ve watched this revitalization effort taking shape, I’ve been adding to the initial very small bag of LUNC. Not a lot but, let’s say, I’ll be really happy if it does manage to grow as the burn tax brings the supply down.
The supply already has dropped some and will start moving even more with exchanges like Binance moving to implement it on their exchange.
If you want to keep tabs on what is going on, subscribe to Happy Catty Crypto’s YouTube or follow him on Twitter. He’s established himself as an accepted, factual voice for the community.
He’s also created a site tracking all kinds of stats about LUNC
The way this community has come together to work on building a community owned and controlled chain has reminded me of how Hive formed.
I’m hoping to see it succeed at rising from the ashes.
Shadowspub is a writer from Ontario, Canada. She writes on a variety of subjects as she pursues her passion for learning. She also writes on other platforms and enjoys creating books you use like journals, notebooks, coloring books etc.
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