Crypto News
17 May 2022

Terra 2.0: Here is What You Should Know

Deepan Datta

Update: CoinSwitch is supporting Terra Network Airdrop

Trading of new LUNA2 tokens on CoinSwitch will be available to trade by 5 PM on 6th June 2022.

The new LUNA tokens will be called LUNA2 tokens and will be airdropped to your CoinSwitch wallet as per the airdrop rules suggested by Terra. 

Old LUNA tokens will be continued to be referred to as LUNA tokens, and will be visible in your portfolio but will not be available for trading.

Users will receive LUNA2 airdrop in the following ratio:

  • Pre-attack 1 LUNA= 1.034735071 LUNA2
  • Post-attack 1 LUNA= 0.000015307927 LUNA2

LUNA2 will reflect in your portfolio only if the current value of your holdings is greater than Rs 0.01 (1 paisa).


After much uncertainty and debate on whether to go for the hard fork of the Terra blockchain or not, the Terra community has finally voted in favor of the proposal. 

On May 26th, 2022, the Terra governance proposal #1623, which suggested a hard fork was passed with 65.5% votes, against the required majority of 40%. 

What Does Terra Hard Fork Mean for Investors?

Essentially, the hard fork will split the existing chain into two or more chains with radical changes in blockchain protocol.

Do Kwon has suggested forking the Terra blockchain to a new chain without the algorithmic stablecoin (UST). This means they are letting UST die after failing to re-peg it. 

Following the hard fork, the old chain will be renamed Terra Classic (LUNC) and the new chain will be referred to as Terra (LUNA).

The protocol will airdrop the new LUNA token to existing LUNC holders, stakers, residual UST holders, and essential app developers.

How the New Tokens will be Distributed?

The hard fork will now be executed on May 27th, 2022, and the rebirth of the genesis chain will be completed. It means Terra Foundation will abandon the old chain (LUNA Classic) and start with Block 0. 

The new LUNA token will have a circulating supply of 1 billion tokens. 

Once the hard fork is executed, 30% of the new LUNA tokens will be airdropped to pre and post-collapse LUNA and UST holders in a proportionate manner. Eligible LUNA holders will receive new LUNA tokens in the following manner:

  • Pre-attack 1 LUNA= 1.034735071 LUNA2
  • Post-attack 1 LUNA= 0.000015307927 LUNA2

To simplify, if you have been holding 1000 LUNA tokens before the attack, you will receive 1034.73 LUNA2 tokens. And, if you have bought LUNA tokens post the attack, you will receive 0.015 LUNA2 tokens. 

Vesting Schedule of New LUNA tokens

The new LUNA tokens come with a vesting period, meaning, the tokens cannot be liquidated immediately, and there is a lock-in period. 

According to the vesting schedule, users with less than 10K LUNA tokens will have a vesting period of 2 years. At the time of airdrop, 30% of the tokens issued will be available for immediate liquidation, and the rest, 70%, will be issued to users’ wallets in over two years with a six-month cliff. Meaning, sixth month from the date of the fork, users will start to receive 3.9% new LUNA tokens each month for the next 18 months. 

If you have more than 10K LUNA tokens, refer to the above table to know the vesting schedule. 

Tokens under the vesting period will be automatically staked to preserve network security. However, users will be allowed to claim their staking rewards during the period. 

The vesting schedule is introduced to eliminate the risk of pump and dump of new LUNA tokens and keep the network stable and gain users’ trust. 

Impact on LUNA and LUNA2 Price

It’s too early to form an opinion about both the tokens. LUNA2 will be the primary token of the Terra blockchain and will be used to support Defi protocols built on top of Terra. 

LUNA Classic (LUNC) will continue to exist, but with no developer support and utility, the market cap of LUNC tokens is most likely to continue to decline. 

Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.


Deepan Datta

Content Writer

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