Terra developers will launch a new network instead of a hard fork

Terra representatives said that the “revival plan” of the project involves not forking the existing network, but creating a new one.

They noted that with a classic fork, the new network inherits the history of the original, but this will not be the case with Terra 2.0.

“If proposal 1623 is accepted, there will be a new blockchain (Terra) starting from genesis block zero, which will not share a common history with Terra Classic,” the team said.

As such, applications or assets from the old network will need to be migrated to the new one—they won’t automatically appear there. According to project representatives, the developers of most popular dappsincluding Prism, Stader, RandomEarth and OnePlanet, are port-ready.

Terraform Labs co-founder Do Kwon, proposing a hard fork, called it “a chance to revive the project from the ashes.” In the community, this idea was met negatively.

At the time of writing, validators support the emergence of a new blockchain with about two-thirds of the votes.

Data: Terra Station.

Right during the vote, Kwon made changes to the original proposal, editing some of the parameters for the distribution of tokens of the new network.

Due to the collapse of Terra, the South Korean-based blockchain company Hashed lost $3.5 billion. The country’s authorities counted about 280,000 affected investors in the depreciated assets of the project and revived an interagency group previously nicknamed the “Grim Reapers” to investigate the incident.

The non-profit organization Luna Foundation Guard (LFG) drained $3.2 billion of its reserve fund in a few days in May as a result of attempts to restore the pegging of the algorithmic stablecoin TerraUSD (UST) to the dollar.

According to KBS, the South Korean police are taking action to freeze assets linked to the LFG. Law enforcement officers turned to local cryptocurrency exchanges with a request to block the withdrawal of any funds of the organization. The police explained the actions with suspicions of the flow of stolen assets into the LFG.

Recall that CEO and founder of Pershing Square Capital Management billionaire Bill Ackman called Terra a crypto pyramid.

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