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THORChain To Remove TerraChain, Launches Emergency Withdrawals For Staked Terra (LUNA) and UST


thecryptobasic.com 19 May 2022 16:05, UTC
Reading time: ~3 m

THORChain Launches Emergency Withdrawals for Liquidity Providers of LUNA and UST Before the Rebirth of New Terra Network.

The cross-chain liquidity network has launched a new update that will enable LUNA and UST liquidity providers to withdraw their funds before a snapshot of the new terra chain is taken by May 27, 2022, as Thorchain is going to remove Terrachain before 27th May.

The current responsibilities:
1) Handle TerraChain in the safest way possible. Unfortunately it needs to be removed from the network prior to its hard fork on May 27.
2) Achieve mainnet

THORFi is not a priority and is indefinitely on hold until the above milestones achieved.

— THORChain (@THORChain) May 19, 2022

With things seeming likely that a new Terra chain will be created on May 27, 2022, in accordance with the proposal submitted by TerraForm Labs, THORChain has released a new update to enable Terra investors to withdraw their staked LUNA and UST from its liquidity pool.

According to a Thorchain, the cross-chain liquidity protocol said it has launched THORChain 1.89 to allow its users who have staked LUNA and UST to withdraw their funds from its liquidity.

Important update for all Terra Liquidity Providers.
– Action required for LPers
– Plan Forward for Terrahttps://t.co/zqPr5dCNmb$RUNE

— THORChain (@THORChain) May 18, 2022

This will enable the balance of their LUNA Classic (LUNC) tokens to be taken during the snapshot exercise scheduled for May 27, 2022.

THORChain Call to Action

Terra investors were asked to withdraw their funds from THORChain before the date the Terra team agreed to fork a new chain or risk losing everything. Failure to withdraw the funds before May 27 could result in a permanent loss of funds as the THORChain protocol is planning to clear Terra from its network.

“In addition, if the liquidity provider does not take any action, its LUNA or The remainder of the UST will be refunded to the relevant wallet,” THORChain said.

This comes following a proposal submitted by TerraForm Labs to create a new Terra chain and LUNA tokens, as part of moves to make investors whole again.

Thorchain clarifies:

“THORChain issued the “Terra LPers Call to Action”, calling on Terra liquidity providers to remove all liquidity. Among them, THORChain version 1.89 has been released. It will allow withdrawals and users with LUNA or UST will have time to withdraw from the liquidity pool. This will still be eligible for Terra’s May 27 airdrop snapshot, but this must be done before Terra forks.

Liquidity providers need to withdraw Terra in a timely manner as instructed before THORChain clears Terra from the network. If users are late, they will not be eligible to apply for snapshots, and funds may be lost forever. In addition, if the liquidity provider does not take any action, its LUNA or The remainder of the UST will be refunded to the relevant wallet.”

Proposal Results Suggest New Terra Will Rebirth

Since voting started for the new proposal, the result recorded so far suggests that a new Terra chain will be created and the newly created LUNA tokens will be airdropped to $LUNC holders.

Per data on Terra Station, a total of 153.92 million votes have been made toward the proposal, with over 80% of these votes favoring the creation of a new Terra chain, while the less than 20% of votes do not support the move.

With the massive hike in votes in favor of the ongoing plans to rebirth the Terra network, many Terra investors have taken to various social media platforms to slam the ongoing exercise, alleging that TerraForm Labs is rigging the poll in its favor.

Regardless, everything looks like a new Terra network will be created by May 27, 2022, and THORChain is not planning to allow its liquidity providers to miss out on the LUNA airdrop when the fork is completed.


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