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- Lido Finance, the Decentralised Finance (DeFi) project has voted vehemently against supporting the new Terra blockchain.
- The actual proposal of the CEO Do Kwon is to carry out a hard fork of the blockchain.
- A hard fork could actually present the Terra network with an opportunity to emerge and gain back the community’s confidence.
Lido Finance, the Decentralised Finance (DeFi) project has voted enormously against supporting the new Terra blockchain, with less than 5.5% voting in favor. Terra network’s validators approved the revival plan very recently.
Lido is a liquid staking protocol and is the fourth largest DeFi platform with a current Total Value Locked (TVL) of $7.83 Billion. LDO is the native utility token for the protocol.
Proposal For A Hard Fork Following Crash
The actual proposal of the CEO Do Kwon is to carry out a hard fork of the blockchain. And the initial chain should move forward as Terra Classic. And the focus of the new one would be to attract Decentralised Finance (DeFi) applications.
Hard forks and soft forks are basically carried out when a network faces some issues or problems. A hard fork comprises splitting the chain into two. And the new branch utilizes a new set of rules.
The recent meltdown of the Terra ecosystem when LUNA collapsed to zero, came as a shock for everyone in the community. And a hard fork actually represents an opportunity for the network to emerge and gain back the community’s confidence.
Although the original reactions to the plans of Kwon were majorly negative with around 92% of the 6,220 members of the Terra community voting against the change.
TerraUSD (UST) and LUNA’s massive crash came amidst the overall bearish trends in the cryptocurrency sphere. To conclude, let’s see what the change could bring for the community and the ecosystem.
At the time of writing, LDO is trading at $0.9822 with a market cap of $307,369,909 and is down by around 7%.
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Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
