Paper detail

Emergency Management and Recovery of Luna Classic

In early May 2022, the Terra ecosystem collapsed after the algorithmic stablecoin failed to maintain its peg. Emergency measures were taken by Terraform Labs (TFL) in an attempt to protect Luna and UST, but then were abruptly abandoned by TFL for Luna 2.0 several days later. At this time, the Luna Classic blockchain has been left crippled and in limbo for the last two months. In the face of impossible odds, the Luna Classic community has self organized and rallied to build and restore the blockchain. This technical document outlines the steps we, the community, have taken towards the emergency management of the Luna Classic blockchain in the weeks after the UST depeg. We outline precisely what would be implemented on-chain to mitigate the concerns of affected stakeholders, and build trust for external partners, exchanges, and third-party developers. For the Luna Classic community, validators, and developers, this outlines concrete steps on how passed governance can and will be achieved. We openly audit our own code and welcome any feedback for improvement. Let us move forward together as the true community blockchain.