Cryptocurrencies
Terra Averts Total Collapse With Plan to Split Blockchain, Abandon UST Stablecoin
- Proposal for new blockchain got 65% of votes in favor
- TerraUSD stablecoin plunged from peg to as low as 4 cents
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A proposal by the founder of the troubled Terra ecosystem to salvage the project was approved, averting a total collapse of one of the most-watched experiments in decentralized finance.
Under Do Kwon’s newly approved structure, the original blockchain will be known as Terra Classic, while its native token Luna, which plunged close to zero this month, will be renamed Luna Classic with the ticker LUNC. The new Terra blockchain will start running a coin under the existing Luna name and ticker, and won’t include the TerraUSD stablecoin.