Proposals to re-enable Terra 2.0 passed

The proposal 1299 to re enable IBC passed over the weekend with a 95% yes vote and 0.01% No vote. Like a previous proposal to burn the community UST pool, this proposal did not successfully execute due to technical issues as well.

Prop 1299 is a failure in a growing list of problems for the Terra governance system.

IBC is an open source protocol for relaying messages between independent ledgers. It was created to connect independent ledgers to one another. The community proposed to re-enable IBC on Terra to release $150 million UST stuck in specific protocols. According to the proposal:

Since the tweet, there have been no further announcements as we draw closer to the May 27th deadline for LUNA's new genesis chain. The Terra.money website now has a full-page announcement promoting Terra 2.0.

The upgrade to its protocol is expected to be released as a result of the page. The headline reads, Terra 2.0 is Nearly Here. Terra is promoting 2.0 in the hopes of restoring the ecosystem of developers working on the blockchain. The new chain will not include UST, meaning that LUNA will serve only one function -- governance.

The holders of the LUNA token will be able to vote on the direction of the new chain but will not receive any rewards through holding. The earn mechanism for Terra Classic was built into the UST LUNA arbitrage-backed peg, and if it is removed, only on-chain governance remains.

Two high-profile proposals failed to execute due to technical issues, and passed two high-profile proposals in the last days of the Terra Classic. Such bugs can cause serious concerns about the viability of the new chain, because they can't instill confidence in investors or builders.