Do Kwon, CEO and co-founder of Terraform Labs, has officially proposed a Terra fork.
“The UST tethering failure is Terra’s DAO hack moment – a chance to rise anew from the ashes,” Kwon said.
The plan is to create a new Terra chain with a Luna token, while the old chain becomes “Terra Classic” and the original Luna tokens become “Luna Classic” (LUNC).
The new Luna will be sent out to Luna Classic holders, steakers, Terra holders and Terra Classic app developers.
The anticipated inflation rate will be 7% due to steaking rewards.
An additional 1 billion Luna tokens will also be issued.
25% of the tokens will go to the community pool, 5% to developers, 35% to Luna holders before the attack, 10% to Luna holders at the launch of the new network and 25% to UST holders.
The proposal will be voted on on May 18.