After losing most of their value in the past two weeks, Terra’s native tokens- UST and LUNA- are experiencing large price swings.
The volatility comes just after Terra opened community voting on its recovery proposal- which proposes to hard fork the blockchain into a new version.
The new version will discard the UST stablecoin, and also create a new LUNA token. The old chain will be called Terra Classic.
Early voting shows that nearly 78% of Terra holders are in favor of the hard fork. This contrasts the results of a preliminary vote, as well as online rhetoric that opposed the move. About 20% of Terra holders have voted against, and vetoed the hard fork proposal. Voting is set to close on May 25.
UST, LUNA volatility spikes
UST was the more volatile of the two. Prices jumped as much as 200% in minutes after voting on the proposal began, before crashing down to below $0.1 shortly after. The token had then swung around the price level before settling at $0.09 at press time- down 28% in the past 24 hours.
