As huge turbulence was hovering within the space that the Terra executive had not handled the crisis in a proper way, the founder Do Kwon came up with a relief plan. As per the relief plan, the existing ecosystem would become Terra Classic with the token named LUNC. And the newly created chain would be known as Terra with the token LUNA. Importantly, the new chain will nowhere be linked to the UST stablecoin, yet be operational with the old chain.
Interestingly, more than 90% of the Terra community opposed the proposed changes and unanimously voted to burn the excess tokens minted. And moreover, the plan to uplift the LUNA price also appears to not have been aligned well. As some believe that the platform is building a brand new blockchain in disguise as a fork.
The chain may have a brand new network and mainly the LUNC tokens are speculated to be burnt to raise the LUNA price in future. However, despite huge opposition from the Terra community, founder Do Kwon is said to have stuck with the V2 plan. However, the voting result may go against the fork. The Terra community may be largely interested to buy back all the minted coins to burn them.
However, the Luna Foundation Guard remained with only $70 million in assets which is a pretty small amount to buy back the entire reserve. Moreover, people believe after a failed experiment of liquidating 80,000 BTC, the foundation is yet again on the verge to try out yet another experiment of forking the blockchain. It is largely been speculated that the founder considers the well being of the institutional investors rather than the retail traders.
On the contrary, when the community sentiments are along with the result obtained by voting, which is largely negative, a significant upswing may make its way out. And hence if the founder continues with the revival plan and launches LUNC, then an adverse impact on the LUNA price may be clearly witnessed.