LUNA2.0 is a significant upgrade and fork of the Terra blockchain network, aimed at addressing the issues faced by the old LUNA token and UST stablecoin.

Background:

Due to the old LUNA token and UST stablecoin being caught in a negative spiral, leading to the decoupling of UST and a crash of LUNA, the original Terra 1.0 ecosystem became difficult to maintain. Therefore, the project team decided to abandon the plan to restore the 1.0 public chain and instead created LUNA2.0, that is, Terra2.0.

Main changes:

LUNA2.0 has abolished the original "LUNA-UST" dual-token system and switched to a single-token model with LUNA. This means that the algorithmic stablecoin UST has been completely removed, and LUNA has become the sole token.

The issuance cap for the new LUNA is 1 billion tokens, while the old LUNA had an unlimited supply. This change aims to prevent a repeat of the previous crash events in extreme situations.

Relationship with the old LUNA:

The old LUNA token has been renamed to Terra Classic (LUNC) in LUNA2.0, while the old LUNA token has been renamed to Terra Classic USD (USTC).

To compensate previous holders of UST and LUNC, LUNA2.0 conducted an airdrop distribution. However, this distribution plan sparked discussions among investors regarding fairness.

Market response:

The launch of LUNA2.0 has attracted some attention in the market. After the announcement, the price of Luna briefly rose, but then it saw a decline.

Despite experiencing crashes and reconstruction, LUNA2.0 and the Terra ecosystem remain active, with investors paying attention to its development status. In summary, LUNA2.0 is a significant upgrade and fork of the Terra blockchain network to address the issues of the old LUNA token and UST stablecoin. It has abolished the dual-token system, switched to a single-token model, and set an issuance cap, aiming to prevent similar crash events from happening again. At the same time, the launch of LUNA2.0 has also sparked market attention and discussions among investors.