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The two staking companies specified that that they would not support Terra 2.0 because of the network’s voting process.
Although a good number of crypto-inclined businesses have declared support for the new Terra blockchain, staking companies Figment and Chorus One are at the opposing end. According to the duo, their disapproval stems from Terra’s decision-making process and how it has handled its recent problems.
Figment and Chorus One allege that the proposal for the new chain underwent modifications even though voting had started. Both leading staking companies took to Twitter to announce their displeasure at Terra.
Staking Companies: Chorus One’s Take
A statement from Chorus One reads:
“We decided to wind down our existing Terra infrastructure following the conclusion of this vote, and will not be joining the rebooted Terra chain as a genesis validator (in the event that this relaunch takes place).”
Chorus One further stated that its decision to shun Terra was two-fold. The first is that the new Terra blockchain failed to adhere to a legitimized governance process, and staking was frozen on the network during the voting process. This resulted in a shifting of voting powers, according to Chorus One. The second reason provided is that there was some amendment in the proposal during voting. As a result, Chorus One refrained from voting and wound down its existing Terra infrastructure.
Similarly, Figment also posted a Twitter message showing dissatisfaction with the Terra voting process and subsequent distancing from the protocol’s relaunch. The staking company’s post reads:
“We do not plan to support Terra 2.0 at launch and will make a decision to support Terra 2.0 at a later date, should we evaluate it as a new opportunity. We regret having to make this decision, more on our reasoning here.”
The latter part of the last sentence refers to an attached link that sheds more light on the entire development.
“The proposal has been unilaterally modified multiple times while the voting period was active, leading to a lack of confidence in the integrity of the vote itself,” that is said in the Figment’s attached blogpost.
As a result, the popular staking company voted “no with veto” on the Terra blockchain relaunch main proposal.
Terra Relaunch Comes on Heels of Price Crash
Terra’s new blockchain relaunch comes after the network recently crashed, following UST’s drop below parity with the dollar. Furthermore, the UST-induced decline also resulted in a collapse of Terra’s native crypto LUNA. The network saw billions of dollars wiped off.
Terra CEO Do Kwon moved to remedy the dire situation by proposing a new blockchain. The Terra restructure proposal secured an overwhelming 65.5% voting approval, and the restitution became official. Set to go live on May 28th, the new Terra blockchain will relaunch using the existing protocol name and the LUNA ticker for its corresponding native token. Meanwhile, the older “Terra” blockchain will split off to become known as Terra Classic. The same goes for the original LUNA, which will become Luna Classic or LUNC.
Following Terra’s restitution plans, some crypto exchanges took to Twitter to pledge their support for the new network.