What is Luna 2.0 and How Do I Receive Airdrops

What is Luna 2.0 and How Do I Receive Airdrops
What is Luna 2.0 and How Do I Receive Airdrops

After the Luna and UST de-pegging crisis that has influenced the price of LUNA token to drop drastically over the past two weeks, there’s been a proposal by the Luna founder Do Kwon which was meant to be a recovery plan for the Luna ecosystem tagged as Luna 2.0.

The revival plan was to create the fork of the existing blockchain – and name the new chain Luna classic while the old chain Terra classic.

According to the revival plan, the new chain will launch with no stablecoin (UST) but a new Luna token – which will be capped at 1billion total supply only.

However, there would be Luna 2.0 airdrop for the UST investors holding UST and Luna before the massive crash.

What Is Luna 2.0?

Luna 2.0 will be the new token of the new Terra blockchain intended to rescue the Terra Luna ecosystem following the stablecoin collapse.

Dubbed the Luna rebirth, TerraForm Labs founder Do Kwon’s proposal will see a new chain replace the existing Terra network. Alongside this, Luna 2.0 will replace the existing version of Luna. It will sever ties to the UST stablecoin that saw the crash happen in the first place.

However, the old chain – and old Luna – won’t just disappear; they will co-exist. The old chain will be known as Terra Classic, while Luna Classic will also see the existing Luna continue.

Luna 2.0 Release Date

The vote has passed, and Luna 2.0 will go live on May 27 – the same day as the genesis block for the new Terra chain.

Terra has now released the Terra Core code for the new chain, while the testnet is also now live ahead of its May 27 launch. This date will also mark the official renaming of the existing Luna coin into Luna Classic.

Snapshots for the airdropping of coins will occur at Terra Classic block 7790000. Depending on the timezone, this is May 27. The official time given is 3:59:51 AM GMT+8 on May 27. This works out as 8:59 PM BST/3:59 PM ET/12:59 PM PT.

At launch, all eyes will be on the Luna 2.0 price. While the new coin will mark a reset for the network, holders and those in the cryptocurrency community won’t forget the collapse of Luna Classic any time soon.

Luna 2.0 Token Distribution

  • Community pool: 30%

Controlled by staked governance

10% earmarked for developers

  • Pre-attack LUNA holders: 35%

All bonded / unbonding Luna, minus TFL at “Pre-attack” snapshot; staking derivatives included

For wallets with < 10k Luna: 30% unlocked at genesis; 70% vested over 2 years with 6mnth cliff

For wallets with < 1M Luna: 1 year cliff, 2 years vesting thereafter

For wallets with > 1M Luna: 1 year cliff, 4 years vesting thereafter

  • Pre-attack a UST holders: 10%

500K whale cap – covers up to 99.7% of all holders but only 26.72% of aUST

30% unlocked at genesis; 70% vested over 2 years thereafter with 6 month cliff

  • Post-attack LUNA holders: 10%

Staking derivatives included

30% unlocked at genesis; 70% vested over 2 years thereafter with 6 month cliff

  • Post-attack UST holders: 15%

30% unlocked at genesis; 70% vested over 2 years thereafter with 6 month cliff

How Do I Receive LUNA 2.0 Airdrops

The share allocation was outlined in quite a clear fashion in the blog post. The amount of LUNA that HODLers would be eligible to receive would be determined by three crucial factors – the types of tokens held on the Terra Classic chain, the HODLing period, and the number of tokens held.

HODLers who held LUNA (including staking derivatives) and less than 500k aUST (UST deposited in Anchor) at the pre-attack snapshot time are essentially eligible for the airdrop. Further, users who possessed LUNA and UST at the post-attack snapshot would also be eligible for the airdrop.

The distribution and vesting of airdropped LUNA would further solely depend on the wallet’s token type & quantity, as well as the snapshot it exists in. Further elaborating on the same, the blog post highlighted,

“At Genesis, 30% of the LUNA airdrop will be immediately available to Pre-Attack users with wallets that had less than 10k LUNA (including staking derivatives) or deposited UST in Anchor, and Post-Attack users with any quantity of LUNA (including staking derivatives), UST, or both.”

Also, it should be noted that at Genesis, all airdropped, vesting LUNA would automatically be staked to Terra validators to preserve network security. Users would earn staking rewards on their vesting LUNA starting from the point at which it is staked and can claim the same rewards at any point in time.

Please note for Binance users:

  • The pre-attack snapshots will include LUNA (old) balances in Spot accounts, Margin accounts, Savings accounts, Staking accounts and Coin-Margined Futures accounts but exclude USDT-Margined Futures accounts.
  • The post-attack snapshots will include LUNA (old) and UST (old) balances in Spot accounts.
  • LUNA (old) and UST (old) borrowed from Margin or Crypto Loans, or LUNA (old) and UST (old) transferred to Spot accounts from these accounts, will not qualify to receive tokens from the airdrop.
  • Binance Staking will further announce more details relating to the airdrop for users with LUNA (old) and UST (old) in their Locked Staking accounts.
  • U.S. persons, entities and sanctioned countries are not eligible to receive this airdrop.