Backers of Terra have accredited a plan to revive the failed cryptocurrency enterprise — with out the controversial stablecoin that helped set off its beautiful demise two weeks in the past.

“With overwhelming assist, the Terra ecosystem has voted to move Proposal 1623, calling for the genesis of a brand new blockchain and the preservation of our group,” Terra’s official Twitter account posted Wednesday.

The proposal would result in the creation of a brand new blockchain — a shared ledger of transactions — and its related luna token, which is now nugatory after traders fled en masse within the crypto equal of a run on the financial institution.

Earlier this month, terraUSD, a so-called stablecoin, plunged under its supposed $1 peg. That led to panic within the crypto market, with traders dumping its sister token, luna.

TerraUSD, or UST, is what’s referred to as an “algorithmic” stablecoin. By means of some complicated engineering, it was designed to take care of its greenback worth by way of the creation and destruction of UST and luna, which might — in principle — assist steadiness provide and demand.

That is totally different from what number of main stablecoins, like tether and USDC, are supposed to function — as in, with precise fiat foreign money held in a reserve to assist the greenback peg within the occasion purchasers withdraw their funds.

At their peak, luna and UST had a mixed market worth of just about $60 billion.

Beneath the brand new proposal, Terra plans to distribute tokens to holders of the outdated luna — quickly to be renamed “luna traditional” — and UST tokens.

About 30% of tokens will go to a pool of traders within the Terra group; 35% will go to those that held luna earlier than its collapse; 10% to pre-collapse UST holders. An extra 25% of tokens will likely be allotted to merchants who nonetheless personal luna and UST after the crash.

Luna spiked greater than 20% Wednesday, in response to CoinGecko knowledge. UST was up over 50%.

Many market observers stay unconvinced Terra’s revival plan will work.

“There was an enormous loss in confidence total within the Terra undertaking,” mentioned Vijay Ayyar, head of worldwide on the Luno crypto trade.

“It is a very crowded house already with a variety of already nicely entrenched platforms which have plenty of developer exercise. I do not see why Terra would succeed right here.”

The Terra debacle has knocked investor confidence in bitcoin and the broader crypto market, which has collectively misplaced roughly $600 billion in worth previously month alone.

Regulators have gotten involved, with the likes of Federal Reserve Chair Janet Yellen and European Central Financial institution President Christine Lagarde calling for pressing regulation of crypto — particularly stablecoins.