This is part of a key plan to help accelerate the Terra system and its related tokens
“The community has been working around the clock to coordinate the new chain’s launch,” Terra developers said in a tweet on Friday morning. “Subject to potential change, we expect Terra to go live on May 28th, 2022 at around 06:00 AM UTC.”
The vote on adopting the "Terra 2.0" blockchain was approved by network validators with a 65% approval rate.
Holders of LUNA and U.S. dollar pegged stablecoin terraUSD (UST) are entitled to vesting of new LUNA tokens based on their previous holdings. This would allow old holders to claw back some of their lost investment value, while incentivizing use of the new blockchain. New tokens will be automatically distributed to existing user wallets.
There are expected to migrate popular applications from the current blockchain – which will continue as "Terra Classic" after the launch of Terra 2.0 – to the new blockchain.
Proposal 1747 of Terra to burn 1.388 billion UST tokens was approved by its governing council on Thursday. This reduced UST’s supply by 11%.
Earlier this month, a run on bank of Terra-backed tokens, UST, caused their prices to fall to as low as 7 cents. Investors dumped LUNA tokens, down by 99%, and Terra-based decentralized finance (DeFi) applications lost $28 billion in locked value.