Terra’s Fork-Recovery Plan Invites Huge Opposition, Will This Adversely Impact the LUNA Price?

In a recent update, the proposal to fork the current LUNA chain into LUNC has been strongly opposed by their own community. The proposal is said to have received huge negative reactions as they mainly intended to create a new chain without the algorithm stablecoin. On the other hand, the community believed burning LUNA tokens is the only option to uplift the price.

Do Kwon had earlier proposed a revival plan according to which a new chain will be forked into a new chain. However, the official governance vote will begin on May 18 and the above sentiment as a result of a preliminary vote carried out on nearly 10,000 validators. And hence as per the latest reports, the validators are against forking the chain and rather insist on burning the excess LUNA tokens. 

Will This Impact the LUNA Price

Well, it is not the first attempt that the Terraform labs tried to bring the LUNA price and the UST peg to normal levels. But eventually failed to do so and the price kept depleting heavily until it reached the lower support. However, the bearish scenario is slowly gearing up and ready to pull the price towards the south.                 

However, after preliminary voting, the proposal is expected to be tabled on May 18, 2022, and further the Terra Core will begin with the oracle, treasury and markets modules begin removed. The network launch instructions are to be made available for the validators on May 21.