The LUNA revival plan has finally been realized as the first block of the new LUNA blockchain is underway. LUNA now exists in two forms, LUNA Classic (LUNC) and LUNA 2.0 (LUNA).
The TerraUSD stablecoin has not been migrated over to LUNA 2.0, meaning that LUNAs only purpose now is on-chain governance.
Over 70% of LUNA supply is either locked in staking, community pool, or for future developer allocation. The distribution of new LUNA tokens is through a worldwide airdrop to all investors who held LUNA or UST on May 7 or May 26, when the two snapshots were taken.
Tokens are being allocated according to the proposal, with the majority going to both the community pool and pre-attack LUNA holders.
Following the final snapshot on May 26, the price of UST dropped from just $0.11 to as low as $0.02. Given that UST has lost its peg to the dollar with no apparent way back, its use case and LUNC are unknown. LUNA 2.0, however, has been adopted by most of the major protocols in the Terra ecosystem. Therefore, there is a real hope that LUNA could rebuild its market cap in the future.
Some investors may have to wait to receive their airdrop as centralized exchanges handle distributing all tokens to individual users.
All eyes will be on how the new tokens trade over the weekend as around 30% of airdropped tokens will be free to trade from day one.