Terra Luna logo, text saying how do you get your compensation?

MUST READ IF YOU HAVE LUNA OR UST Here is what you have to do to get your compensation for LUNA and UST, vote is over.

As the last vote is counted on Do Kwon's proposal. We see his proposal for a hard fork has overwhelming support with over 65% of the cast votes voting in favor. But unless you have been following closely you might have missed the new amendments that have been made during the voting. Let us look at them.

The amendments

Let us look at the amendments that have been made and compare them to the original proposal. Some broad changes have been made. They no longer talk about the de-pegging event. It is referred to as "the attack". And the focus has switched from looking at the depegging and the second stop of the Terra Blockchain. To now only look at before the "attack" and after the "attack".

Original proposal:

  • 400M (40%) to Luna holders before the depegging event (last $1 tick before the depeg on Binance should be reasonable), bLuna, LunaX and Luna held in contracts should also be recipients, minus the Terraform Labs account at terra1dp0taj85ruc299rkdvzp4z5pfg6z6swaed74e6. The new chain should be community owned. Preserving decent ownership of the network in its strongest believers and builders is important.
  • 400M (40%) to UST holders pro-rata at the time of the new network upgrade. UST holders need to be made whole as much as possible
  • 100M (10%) to Luna holders at the final moment of the chain halt – last minute marginal luna buyers should be compensated for their role in attempting to provide stability for the network
  • 100M (10%) to the Community Pool to fund future development.
  • All Luna besides the third tranche should be staked at the network genesis state.
  • The network should incentivize its security with a reasonable inflation rate, say 7%, as fees will no longer be enough to pay for security without the swap fees.

Amended proposal:

  • Community pool: 30%
    • Controlled by staked governance
    • 10% earmarked for developers
  • Pre-attack LUNA holders: 35%
    • All bonded / unbonding Luna, minus TFL at “Pre-attack” snapshot; staking derivatives included
    • For wallets with < 10k Luna: 30% unlocked at genesis; 70% vested over 2 years with 6mnth cliff
    • For wallets with < 1M Luna: 1 year cliff, 2 year vesting thereafter
    • For wallets with > 1M Luna: 1 year cliff, 4 year vesting thereafter
  • Pre-attack aUST holders: 10%
    • 500K whale cap - covers up to 99.7% of all holders but only 26.72% of aUST
    • 30% unlocked at genesis; 70% vested over 2 years thereafter with 6 month cliff
  • Post-attack LUNA holders: 10%
    • Staking derivatives included
    • 30% unlocked at genesis; 70% vested over 2 years thereafter with 6 month cliff
  • Post-attack UST holders: 15%
    • 30% unlocked at genesis; 70% vested over 2 years thereafter with 6 month cliff


First of all, as far as I can tell both proposals are centered on the new pool of LUNA being 1B tokens. They have just switched to a % base in the amendment compared to actual numbers in the original proposal.

So simply by taking a quick peek here it is pretty clear who it is that has the ear of Do Kwon. In the original proposal, 10% of the LUNA tokens were remarked for the community pool, to fund future development. Now if we take a look at the amended proposal. We can see the 10% has not only grown to 30%. Its purpose has vastly changed as well.

It has transformed from a community pool to fund future development. Into a 10% that goes directly to the developer who follows Do Kwon over to the new fork, and states loyal. And an additional 20% in a community pool controlled by staked governance.

UST holders removed almost completely

A second thing that is a very stark contrast is moving from allocating 40% of the tokens to UST holders and saying "UST holders need to be made whole as much as possible". To now only mentioning aUST holders from before the attack, and anyone still holding UST, post-attack.

This might be because of the Luna Foundation Guard, LFFG, and Do Kwon, at a later date. Have tweeted that UST holders will be made whole using the remaining funds available to the LFG. Any more details on this, like how or when has yet to emerge. 

Protecting against a massive dump

Another change has been implemented in order to protect the new token from a massive day one dump. At least that is one of the reasons I see for the change. Is that almost all new Tokens will be given out a portion at a time. This means you will not be able to get all your compensation on day one. Instead, you will only get, usually, 30%. The remaining 70% will be vested over 2 years thereafter with 6 month cliff.

And if I have not completely missed the boat with how vesting works. It works in this way. Let us take the "vested over 2 years thereafter with 6 month cliff" as an example. As that will apply to most people. This means that the remaining 70% of your compensation will take 2 years for you to fully get. And you will get part of it every 6 months. So it looks like it will be paid out over a total of 4 installments. With each installment being 25% of the remaining 70%. Or 17,5% in each installment. I really hope you like numbers. Because there has been a lot of them here. ^^

The second reason for using a vesting period like this. Is alto to keep the customers tied up to you. Now with doing I this way. Do Kwon basically prevent a massive dump on day one. With people only getting 30% of the total compensation. He also ensures that you will keep using the new Terra Network if you want to get the remaining 70%. 

A note of caution as well. There might be some legal sneakiness in the whole thing as well. Where if you do X you will be disqualified from receiving any further rewards. So make sure to read any and all documents they send your way. I would not put it past them to try something like that.

What do you need to do to qualify for the rewards, this part is the important part

One of the most important amendments to the initial proposition is the disclaimer that Do Kwon has put up top.

Disclaimer : Please be aware that due to technical constraints, it is not possible to include all UST and LUNA holdings on Terra and other chains in the snapshots mentioned. Assets that may not be included:

  • UST or LUNA bridged off of Terra
  • Users with bridged UST or LUNA who would like to be included in the post-attack snapshot need to bridge back to Terra before the snapshot is taken.
  • UST or LUNA on Terra protocols that cannot be easily identified
  • All protocols listed on DeFi Llama here (Terra TVL - DefiLlama 5.8k) will be covered, in addition to a few others that are known.
  • UST or LUNA on CW3 multi-sig contracts
  • Most UST and LUNA in CW3 multi-sig contracts will be accounted for, but there could be edge cases.

In short, you need to get your UST and LUNA back onto the TERRA Blockchain. Because if not they can not guarantee that you will get any compensation. Personally, I think this is a bunch of BS. And simply a cheap way to try and cut some people out of the rewards, by putting some hoops that they now have to jump through. And going by how "happy" (yes a bit of irony there to spice it up) people are with TERRA, LUNA, UST, and Do Kwon himself. I think many will simply just say an extra couple of FU and cal it a day.

If you do have LUNA or UST and are looking to move them back. I personally used the TERRA Bridge, the wormhole to be more exact. To bridge my assets back onto the TERRA Blockchain.


But there is a hand full of other ways you can do this as well. Just make sure that you have a wallet that is on the TERRA Blockchain. And that you then connect this wallet to one of the services listed as ok. You can find the list here: https://defillama.com/chain/Terra above in the statement or below in the resource section.

This appears to be the only "safe" guaranteed way to be able to get some compensation. At least according to Do Kwon. And he was also so nice as not to mention any of the ok protocols to use that were not on the TERRA Blockchain. If that is not a sign of a Leader taking responsibility, I do not know what is (yes more irony, this is a long post so I become peeved during the writing of it, the more I read about how they are doing things).

Also important to note is that the “Post-attack” snapshot will be taken at Terra Classic block 7790000 (2022.05.27 03:59:51+08:00). So only a few days to sort it out.

What are my thoughts about this?

As a player, and designer, of board games. I have both read and written my fair share of rules. And let me tell you one thing about boardgamers. In case you did not know. They are very good at finding loopholes and gray areas in the rules. 

One such area here that I see is whether the Community, which now gets 30% of the new tokens, also gets a piece of the other pools. As it is very likely that they also have UNA and UST. And they probably hold a big amount of tokens as well. At least compared to the average holder, both before and after the "attack".

The same goes for LUNA holders if you held LUNA and are holding on to them. Do you get rewards from both pools? 

And what is up with UST holders? It is fine to say they should be compensated. But Do Kwon has had plenty of time to figure out and say how this will happen. Not just leave a tweet saying they will be compensated. 

Personally, I think this whole thing stinks of corporate greed. Looking at how the initial proposal would give more to the actual token holders. Do Kwon even say something like the new LUNA should be run by the users or something to that effect. And then do a hard 180 turn as soon as the companies start calling him upset over that they got left out. 

And the fact that the proposition is getting changed while the voting is going on. That is just a shitty thing as well. What are the odds of people voting early actually going back to check if someone made a change to what they were voting on? My guess is that it is slim to none. Why would they? This is like swapping a candidate mid elections, hoping no one notices. And you say well if they don't like it they can go change their vote.

And the more I learn about Do Kwon the less I like him as a person or business leader. He has displayed 0 quality of a person who can be in charge during a crisis. And having an increasing amount of legal troubles piling up in his home country of South Korea, this is a big red flag as well. Things like Tax evasion as well as possible embezzlement of the funds the LFG was supposed to use to try and save the UST.

Not to mention how he played into the narrative of there being an "attack" by now referring to the depegging of the UST as an attack. An attack that last time I checked has 0 profs in support of it. And the likeliest conspiracy has Do Kwon himself allowing back door privileges to the persons who depegged the UST. As well as him tweeting and taunting billionaires to try and attack TERRA. 

Al in all I think he is probably one of the worst persons in crypto.

I am sorry for the ranty ness of the last section. I usually try and keep my opinions to a minimum. But this topic has me all fired up. And if you have made it this far, thank you. I really appreciate you for taking the time to read this long post. And if you have any thoughts on the topic talked about above, please share them in the comment section down below. Almost forgot, that this is not financial advice.

If you have found this post informative or entertaining. Please consider following me, reading some of my other posts or why not do both. You can find them here and here.

I have also just started a new series of weekly posts, that will go live every Friday. You can catch the first step here:

My Journey to Financial Freedom - Trying new ways to earn money, sharing bandwidth


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