• May 27, 2022

“Terra 2.0 will not be a fork, but the genesis of a new Blockchain,” the Terra developers expressed

“Terra 2.0 will not be a fork, but the genesis of a new Blockchain,” the Terra developers expressed

The group of developers behind the Terra (LUNA) project has clarified by means of Twitter that Terra 2.0 will not be a fork, but will be a new Blockchain.

“The reactivation plan does not propose a fork of the existing Blockchain, but the creation of a new one.” Expressed the Terra team in Twitter.

The Terra team defined a fork, or “hardfork” in English, as a change in an existing blockchain that results in two Blockchains with a shared history but with “distinct future paths.”

«The important distinction here is that a forked Blockchain shares its entire history with the original Blockchain, which Terra 2.0 will not do. If proposal 1623 is approved, a new Blockchain (Terra) will be created from the genesis 0 block that will not share the story with Terra Classic,” the team commented on Twitter.

The reactivation plan for Terra will be approved by a vote of the “proposal 1623”, which suggests that the old Terra Blockchain, is renamed Terra Classic and has Luna Classic (LUNC) as its main token, which is about to be launched in the coming days. Likewise, the new Blockchain will be called Terra and will make use of the original Luna (LUNA) token.

On the other hand, Do Kwon clarified that Terra will set aside the TerraUSD (UST) Stablecoin that fell below $1 dollar. Also, the team added that the popular decentralized applications (Dapps) created in Terra Classic, will not automatically migrate to the new Terra Blockchain.

The current confusion in the community is due to Do Kwon using the term “fork” in his Terra reactivation draft. However, the founder of Terra recently removed that term from publication.

Terraform Labs is under investigation in South Korea

At the time of writing, there are only 8 hours left before the voting on Proposition 1623 concludes. According to Terra Station, 79.80% of all possible votes have been cast and 66.87% of voters are in favor of the proposal.

However, the fate of the project could be at stake. According to reports, the South Korean authorities are trying to freeze the assets of the Luna Foundation Guard (LFG).

According to local media, the Seoul Southern District Prosecutor’s Office has launched an investigation into Terraform Labs, and assigned the case to its Joint Financial and Securities Crimes Investigation Team, a special financial crimes team recently created by South Korean Justice Minister Dong-hoon Han.

The research was announced a day after five investors of Terra residing in South Korea and damage combined 1,400 million won (approximately $1.1 million) to file criminal complaints against Oj Kwon and Daniel Shin, on charges of fraud and other violations of financial regulations.

“The lack of adequate information about the failures and the unlimited expansion of the Luna issue amounted to defrauding investors.” According to a representative of LKB & Partners, the law firm hired by the five investors, charges were filed against Terraform Labs.

Terraform Labs is currently incorporated in Singapore, but registered to operate its business as “Terraform Labs Korea” in South Korea. Adding to the current situation, the news platform, The Block, reported that on May 17, Terraform Labs’ in-house legal team resigned in the wake of the collapse of UST and Luna.