Voting On New Terra Chain To End Soon, Where Does The Tally Stand?

Community voting on Terra’s proposal to create a new blockchain is set to end later in the day, with a majority of LUNA holders in favor of the fork.

With six hours left to vote, over 67% of holders have voted yes. Just over 12% of holders have opposed the vote, while 20%  have  abstained from voting, data shows.

So far, nearly 81% of all LUNA holders participated in the vote. A bulk of the holders supporting the proposal appeared to be validators on the Terra blockchain.

Under the proposal, a new Terra chain will be created, while a new LUNA token will be airdropped to current holders. The new chain will discard the UST stablecoin.

When will the new Terra be launched?

Under the proposal, Terra founder Do Kwon said the new chain could go live by as soon as May 27. Kwon’s timeline entails that the Genesis file will be created on May 27, just before the launch.

Terra recently also clarified that the new chain is not intended to be a hard fork, but rather, an entirely new blockchain.

Kwon and Terraform Labs (TFL) are already in the process of collecting snapshot data for the airdrop. Holders from prior to May 9- when the de-pegging occurred- will receive a bigger portion of the airdrop.

Terra holders are speculating that the snapshot for holders after the de-pegging could occur by as soon as May 26, when block 7,790,000 is generated on the blockchain.

Do Kwon, TFL face community, regulatory backlash

While the proposal will excise TFL and Kwon from the new Terra blockchain, the creator has received widespread ire over the crash.

South Korean authorities are reportedly pursuing legal action against Kwon and TFL on multiple fronts, including fraud and tax evasion.

The crash is also expected to increase crypto regulations across the globe, with lawmakers in the United States and Europe already calling for more action.