Now that Terra 2.0 is a fact, many of our readers (including in the Instagram comments) are wondering how and when they can participate in the upcoming airdrop† In this article we will try to answer your questions.
Terra 2.0, a new network with a fresh start
But first a brief summary of what Terra 2.0 is. Following the disastrous Terra crash, the new network is launched to revive the project. For this, the old network will be split up, although it should not be seen as a hard fork. It is a completely new network.
To get this network off the ground, and to somewhat compensate LUNA owners, an airdrop is being held. This means that the cryptocurrency of the new network will be distributed to the LUNA owners who have been victims of the crash. But LUNA holders who picked up some dirt-cheap LUNA after the crash also lay claim to the new cryptocurrency, which will also simply be called LUNA. How and what you will read in the next part.
LUNA airdrop, how is it arranged?
As stated in the adopted proposal 1623, the new network will be launched on May 27. At that point, LUNA classic (LUNC), terrausd classic (USTC) and aUST owners will receive a portion of their new crypto in their wallets. However, how much you get depends on when you owned these cryptocurrencies. There is therefore a “pre-attack” and “post-attack” snapshot taken from the old Terra blockchain.
The pre-attack snapshot is a snapshot of the blockchain on May 7 at block height of 7544910, i.e. before the collapse. The post-attack snapshot will be taken on May 26 at block height of 7790000. And now it might get a little complicated. Depending on these snapshots, how much you get is determined.
How is the LUNA and UST paid out?
Holders who had LUNA and UST (that is, UST deposited in Anchor) before the crash and/or LUNA and UST after the crash are eligible. MC shows in a blog post by means of a table how much everyone gets:
If you had up to 10,000 LUNA in your wallet before the crash, you will receive an airdrop of 30% based on your old balance immediately after the launch of the new network. The remaining 70% will be paid out over a period of 2 years with a cliff of 6 months, which means that the payout will start after 6 months. LUNA balances between 10,000 and 1 million LUNA are paid out after 1 year over a period of 2 years. Balances above 1 million LUNA are paid out after 1 year over a period of 4 years.
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How much LUNA will I get?
Now that you know how the new cryptocurrency is being distributed, you are probably wondering how much you are getting at all. In a tweet, Orbital Command let you know how much you will receive approximately per 1 unit of the old cryptocurrencies:
3/10 How much new LUNA you will get for each category:
• Pre-attack LUNA – 1 : ~1.1
• Pre-attack aUST – 1 : 0.033
• Post-attack LUNA – 1 : 0.000015
• Post-attack UST – 1 : 0.013
Eg, if you have 1,000 UST on May 27th you will get 0.013 * 1,000 = 13 new LUNA.
— Orbital Command (🌎,🌔) (@orbital_command) May 24, 2022
Important notice about exchanges like Bitvavo
Finally, an important announcement. The above information is intended for Terra wallets, and not exchange accounts. Although many exchanges such as Binance and FTX have indicated that they will support the new network, the Dutch Bitvavo has not yet made a choice. For this it is best to use the bitvavo keep an eye on the blog!