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May 25, 2022

Lido Finance Is Not Supporting Terra 2.0

Lido Finance, the world’s largest liquidity staking pool platform, said on Wednesday that the Lido staking pool will not be available on Terra 2.0. The Lido DAO community rejected the idea to support Terra’s reboot with 94.57 percent voting no. Terra was, in reality, the second-largest platform for liquidity staking behind Ethereum, with around $10 billion in total value locked (TVL) before the meltdown, according to Lido Finance.

On May 22, the Lido DAO proposed a vote on whether Lido should be launched on the new Terra platform. However, owing to perceived hazards, the community has decided to oppose the re-launch of the Lido staking pool on Terra 2.0.

“No relaunch” earned 94.57 percent of the votes, with 54 million LDO tokens, while “Relaunch” received just 5.43 percent of the votes, with 3.1 million LDO tokens. The governance procedure affirmed Terra’s rejection once the Lido community voted.

Despite the $19,250 monthly revenue proposed by Terra, the community has overwhelmingly decided against adopting Terra 2.0. If the Lido DAO rejects the proposal, bLUNA and stLUNA holders can still claim LUNA, according to the proposal.

Terra’s new coin will be distributed to bLuna and stLuna holders regardless of the DAO’s decision. In other words, even if the DAO decides not to support the reboot, bLuna and stLuna users who were present at the time of the snapshots will be able to collect their allocations.

Furthermore, Lido Finance will soon disclose information about Lido on Terra Classic for the benefit of bLuna and stLuna holders. Meanwhile, Terra 2.0 proposal 1623 for the new blockchain has been approved. The proposition gained 65.5 percent support, 20.98 percent abstention, and 0.33 percent opposition.

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Do Kwon, the creator of Terraform Labs, obtained support from validators and the Terra Builders Alliance, but community support is still unknown at this time. In reality, due to current investigations, South Korean exchanges including as Upbit, Coinone, Cobit, Bithumb, and Gopax appear to be rejecting the listing of the new LUNA cryptocurrency.