Terra’s new blockchain is not supported by Lido Finance
After the dramatic collapse of Terra’s existing chain earlier this month, Lido Finance has opted not to support the new Terra blockchain when it opens.
As of 6:20 a.m. ET on Wednesday, Lido DAO had overwhelmingly rejected providing support for the new chain, with 95 percent of the vote rejecting the proposal. Only 3.1 million LDO — Lido’s governance token — voted in favor, with 54 million LDO voting against.
Lido Finance is a liquid staking mechanism that increases staker liquidity by unlocking the value of staked tokens. On Ethereum, it is now the most popular liquid staking mechanism. Terra was the second-largest platform after Ethereum, according to the proposal, and it managed $10 billion in worth before it crashed.
Following Terra’s demise, a vote to determine the destiny of the Terra blockchain will take place in less than an hour. The fundamental idea is to rebuild the chain by airdropping tokens to users who were harmed by the previous network’s collapse. Vesting periods apply to several of the tokens.
Importantly, the airdrop only distributes tokens to companies that are dedicated to developing on the new blockchain. This includes an emergency budget for the most important tasks. Lido Finance would have been eligible for these funds if it had elected to sponsor the new Terra chain. According to the idea, Lido Finance would earn $19,250 per month by promoting the new chain.
“We can always join the reboot at a later time if the chain proves to be useful and well-run and has grassroots support. At this time there are too many questions around the reboot and committing poses potentially high downsides with little upside.”
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