Terra 2.0 new LUNA has dropped roughly 70% since its opening of $18.87 on Saturday to sit at around $5.71 at the time of writing and it’s by no means out of the woods yet.  

On May 16, Terraform Labs founder Do Kwon outlined his plans to revive the collapsed Terra ecosystem. Under the revival plan, new LUNA tokens, also referred to as LUNA 2, are being airdropped to investors that previously held Luna Classic (LUNC), TerraUSD Classic (USTC) and Anchor Protocol UST (aUST).  

Following the Luna/UST fiasco, the governance voted to change the name of the original network to “Terra Classic,” whose tokens are now called LUNA Classic (LUNC), in order to position the newly launched Terra 2.0 as the main network, which aims to be a more sustainable network to replace the flawed, UST-dependent Terra Classic. Unlike the original version, the new Terra chain exists without an algorithmic stablecoin and comes only with LUNA that has a fixed total supply of 1 billion tokens. The new tokens will be traded separately from LUNC, which has a circulating supply of more than 6.5 trillion. As such, the new LUNA token will power the new chain by staking and paying gas fees, just like other L1s.

The sharp decline in LUNA’s price continues to cause panic among investors following Do Kwon’s failed revival plan, with many investors claiming that they are only hoping to recover a small portion of their previously lost capital and wipe their hands clean of the project.