A few days ago, the Terra team, led by Do Kwon, made a proposal to the community to fork LUNA and create a new LUNA coin in a new chain. It was named Proposal 1623. However, the community has been reluctant to accept the proposal, with the majority opting to burn LUNA instead. Still, Do Kwon and his team seem to be overly determined to push their proposal through.
In a recent twitter thread, Terra has announced an amendment to the initial proposal. This could be seen as an attempt to woo the community into accepting its plans. The announcement introduced a few changes to the proposal.
Increase Genesis Liquidity
When the fork happens, the initial coin supply will be increased from 15% to 30% to offer more liquidity for all UST and LUNA holders. This will also be tuned to give leeway for the team to mitigate inflation in the future.
LUNA Holders To Get New Liquidity Profile
Those who held LUNA before the crash will have new liquidity profiles. Those with less than 10k Luna will enjoy the 30% initial liquidity as well as access to the other 70% over a 2-year period. This measure may be aimed at boosting token distribution in the community in a balanced manner as opposed to a few whales holding huge percentages of the coin supply.
Initial UST Holders To Get Less
Those who bought UST after the crash will get less token allocation which will be reduced from the initial 20% to 15%. This will work to make sure that the original stakeholders of LUNA will be at par with the UST holders who bought after the de-pegging.
Community To Review Amendments
In the announcement, Terra said that it will give the community a 5-day period to review the amendment and vote on it. It’s yet to be seen whether the community will accept the changes and agree to implement the LUNA fork or if this new twist will create a backlash within the community. Results will be out in 5 days.
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