Terra is a decentralized, open-source, and public blockchain protocol that employs a Proof-of-Stake consensus mechanism to support decentralized apps (dApps), especially in the DeFi space. LUNA is the native digital asset of the Terra blockchain, which serves as the governance and utility token of the ecosystem.
The original Terra ecosystem collapsed following an attack that depegged the TerraUSD (UST) stablecoin and led to a crash in the price for the original Terra (LUNA) token. The development had caused a loss of over $40 billion from the crypto market, leading its co-founder Do Kwon to devise a revival plan.
When was LUNA 2.0 Launched?
The Terra blockchain in its current form was upgraded after the passing of governance proposal 1623 by its community, leading to the genesis of a brand new blockchain, while the previous one, or Terra 1.0, is now called Terra Classic (LUNC). The acceptance of this proposal by the community resulted in the creation of the updated Terra network on 27 May 2022, also called Terra 2.0, with LUNA (or LUNA 2.0) as its native token.
The mainnet launch of the new Terra blockchain took place on 28 May 2022. The genesis block, the first block on the new mainnet, was created at around 06:00 UTC and was known as Phoenix-1.
Terra 2.0 is not a hard fork of the original Terra blockchain but is a brand new blockchain protocol that will no longer support stablecoins as Terra 1.0 did. According to the Terra Ecosystem Revival Plan by Do Kwon - the founder of Terraform Labs, Terra will go on to support some of the leading dApp projects from the original blockchain and replace the Terra 1.0 network.
Projects and assets running on the original Terra blockchain will not automatically move to the new blockchain but will need to migrate themselves. Some of the leading dApps committed to migrating to Terra 2.0 include Astroport, Prism, RandomEarth, OnePlanet, and Stader.