Terra Launches New Proposal To Airdrop LUNA Coins to Users Who Received Incorrect Allocation in May

The Terra team wants to airdrop more tokens to investors who received incorrect amounts of LUNA during the project’s rebirth.

TerraForm Labs (TFL), the company behind the popular blockchain project Terra, has revealed that it has created a new proposal to airdrop LUNA from the community pool to selected users. 

The proposal dubbed Terra Phoenix Airdrop was created to airdrop 18,709,455 (18.7 million) LUNA tokens worth $36.86 million to users who did not receive the correct allocation of their tokens during the initial airdrop exercise. 

TFL to Fix Incorrect Terra Allocation

Notably, not all users affected by the collapse of Terra ecosystem tokens received the correct allocation during the initial airdrop. The issue stems from technical constraints as well as indexing issues, TFL noted. 

However, the Terra team is willing to fix the issue via the new proposal that went live on Agora today. 

“A new proposal to airdrop LUNA from the Community Pool to users who either did not receive the correct allocation of LUNA at Genesis due to technical constraints or issues associated with indexing is live on Agora,” TFL said in a tweet. 

1/ A new proposal to airdrop $LUNA from the Community Pool to users who either did not receive the correct allocation of $LUNA at Genesis due to technical constraints or issues associated with indexing is live on Agora ?

— Terra ? Powered by LUNA ? (@terra_money) August 16, 2022

The proposal highlighted a list of crypto wallets and their respective blockchains that will be eligible for the airdrop. Some of the blockchains include Avalanche, Binance Smart Chain (BSC), Polygon, ThorChain, etc. 

Based on the details of the proposal, the new airdrop calculation and vesting schedule will follow that of the LUNA airdrop at Genesis. However, there will be a slight adjustment to the Terra Phoenix airdrop. 

“To avoid market liquidity instability upon distribution, all LUNA airdropped to holders of less than 10k Pre-attack LUNC, any Pre-attack aUST, or any Post-attack LUNC and/or USTC will vest over two years with a 6-month cliff,” the proposal reads. 

LUNA Underperforms Despite Efforts to Make Investors Whole

TFL is still working round the clock to ensure investors are fully compensated for their losses after LUNA and UST suffered the biggest plunge in crypto history. 

As reported by TheCryptoBasic, TFL created a new chain and new tokens to make investors whole. However, things have not gone as the company has planned. Per data on cryptocurrency aggregator platform Coingecko, LUNA is down nearly 90% from its all-time high of $18.87. At press time, the asset class is changing hands at around $1.97. 

The Terra project has continued to face widespread scrutiny, with aggrieved investors slamming a series of class actions against the team behind the project. 

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