A new proposal for the LUNA airdrop was passed on Friday, 2nd September. The Terra Phoenix Airdrop aims to compensate for the Genesis drop, announced in June. According to details of the proposal, over 19 million LUNA will be requested to “execute an airdrop to users who did not receive the correct allocation of LUNA at Genesis due to technical constraints or issues associated with indexing.
The Genesis airdrop was designed to compensate victims of the massive losses following the de-pegging of the UST (now USTC) stablecoin. Unfortunately, due to how the Terra ecosystem is designed, LUNC holders also suffered huge losses, causing the crypto market to shed over $17 billion of its market capitalization. And an aftershock that crippled several protocols and projects across different ecosystems.
Apparently, the Phoenix airdrop will further compensate victims of the black swan event while resolving issues such as the exclusion of Orion users on Ethereum and Polygon. However, certain chains were excluded due to the inability to properly index, technical complexities, or small amounts of USTC, aUST, or LUNC held on-chain at the snapshot height. Therefore, while non-Terra exchange addresses were eligible for the Genesis airdrop, they will not receive this additional airdrop.
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The Phoenix airdrop will have a vesting schedule and calculations similar to the Genesis airdrop, with one key difference: To avoid market liquidity instability upon distribution, all LUNA airdropped to holders of less than 10k Pre-attack LUNC, any Pre-attack aUST, or any Post-attack LUNC and/or USTC will vest over two years with a 6-month cliff.
Although both airdrops compensate for the chain of losses in May, they will never fill the huge gap as both LUNC (formerly LUNA) and USTC (Formerly UST) are trading at prices far below their initial values. LUNA is currently trading at $0.00024 from an ATH of $119, while USTC has depegged to $0.03. Eligible users can claim the Phoenix airdrop from 4 September 2022 to 4 October 2022.
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