The unfortunate collapse of the network now known as Terra Classic has led to the Terra Ecosystem Recovery Plan, for which the Inlock platform is fully prepared to support.
Along with this, Inlock is also prepared to partially support the new Terra 2.0 chain, providing all clients the LUNA airdrop (compensation) they receive. They will have the opportunity to exchange their (new) LUNA airdrop into stablecoin through the Swap function, therefore minimizing any losses they may have incurred on the Terra Classic collapse. However, no other on-chain activity will be allowed besides the Swap function, so it won’t be possible to either deposit or withdraw the new LUNA. In case any of our clients still insists on withdrawing, they can initiate it through our support channels (e-mail and live chat).
It is important to note that we do not consider the Terra 2.0 LUNA as an officially supported asset on the platform, so we are not able to pay interest on them.
The platform has been prepared to support both the Terra 2.0 chain’s existing and new asset naming structures. Accordingly, the following assets are already available on the Inlock platform:
LUNC – Luna Classic – The native asset of Terra Classic.
USTC – Terra Classic USD – The asset of the Terra Classic network linked to the dollar exchange rate.
LUNA – Terra 2.0 LUNA – The native asset of the new Terra 2.0 network.
The process of the airdrop
Our clients do not have to do anything to get airdrop coins. They will be automatically distributed on the first weekend of June 2022.
In line with the Terra Ecosystem Revival Plan, we are forced to apply the following rules, as this is how we also get the compensation:
• As a first step of the airdrop, each stakeholder will receive 30% of the airdrop, with the remaining 70% available in a locked collateral sub-account. The locked assets will be released to our clients as they become available to Inlock.
• In accordance with the Revival Plan, the airdrop eligibility is determined by the balance as of 07/05/2022 14:59:37 and 26/05/2022 16:38:08. All clients will have eligibility defined using this rule based on their USTC and LUNC balances at that time.
• Inlock is a lending platform that works by lending clients’ assets with high interest rates and over-secured collateral. Accordingly, some of the old UST and LUNA assets stored on Inlock were outsourced to partners at the time of the collapse, so the airdrop on these outsourced assets was also received by our partners. The “Master Loan Agreement” developed and used by Inlock also covers such claims and clarifies that Inlock is entitled to the reward from the forks and airdrops in such cases. However, the 2-year delayed payment prescribed by the Revival Plan makes it much more difficult to obtain this. In addition, our partners may dispute the justification for the so-called “fork clause”, so it is expected that in these cases we will either have to proceed to legal action or make an individual settlement to receive the airdrop. Based on this limitation, on 5th of June we will able to pay out 65% of the airdrop amount to every eligible customers. We can pay the remaining amount at a later date in the light of agreements with our partners.
What are the details of the airdrop and the conversion rate applied?
In line with the Terra Revival Plan, all airdropped LUNA that we receive will be 100% returned to our clients. They will receive 30% of the tokens now, and the remaining 70% according to the schedule specified in the Revival Plan.
To determine the conversion rates, the document “Terra 2.0 – LUNA Airdrop Calculation Logic” is used. Accordingly, the conversion rates:
• 7 May LUNC balance: 1 LUNC = 1.034735071 (new) LUNA
• 7 May USTC balance: 1 USTC = 0.01827712 (new) LUNA
• 26 May LUNC balance: 1 LUNC = 0.0000153 (new) LUNA
• 26 May USTC balance: 1 USTC = 0.023548 (new) LUNA
The Revival Plan contains several additional details to unblock assets and also limits the maximum amount of airdrops that can be accessed per wallet (whale clause).
These detailed rules are supplemented by the following Inlock-specific rules:
• For both the 7th of May and 26th of May LUNC balances, the airdrop will be paid 1/1.
• In the case of USTs, only clients with at least 1,000 USTs at the given date will be eligible for compensation, and the airdrop legal basis for USTs will be maximized at 250,000 USTs. Clients who did not have 1,000 USTs on the applicable date are not eligible for airdrop, and clients who had more than 250,000 USTs will receive airdrop as if they had 250,000 USTs.
• Only clients with at least 1 (new) LUNA are eligible to get the airdrop reward.
• Inlock will maintain the modification made to the Easter UST referral promotion: eligible clients will receive up to $100 in USDC instead of UST for their deposits.
Inlock will continue to do its best to ensure that in addition to providing a high level of service, the associated risks are identified, managed and communicated to clients. Cryptocurrencies are highly volatile and significant price fluctuations may occur within hours. The Inlock platform has no control over the exchange rates and therefore cannot guarantee any losses or gains resulting from exchange rate fluctuations!
If you want to learn more about the Terra ecosystem’s collapse and its reasons, click here to read our blogpost about it.
#update (2022.06.05): we updated the “process of the airdrop” part and added a minimum distribution amount limitation to “Inlock-specific rules” part to reflect the current state of prepared airdrop distribution. (See all changes in red)