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Terra Projects Begin Moving to Polygon after UST LUNA Crash

Terra Projects

INTRODUCTION

Terra’s UST, which got depegged from the dollar early in May 2022 is still something that people remember very vividly. Almost overnight, over $40 billion of wealth was wiped out of the crypto market. Its spill over effects impacted the rest of the market severely too, and the crypto market hasn’t really been able to recover from that hit yet.

And it seems, that story hasn’t seen the end yet. Polygon Studios CEO Ryan Wyatt has said that dozens of projects built on the collapsed LUNA Terra blockchain are now moving to Polygon’s (MATIC) ecosystem. The CEO says projects migrating from Terra to the Ethereum (ETH) layer-2 scaling solution include non-fungible token (NFT) marketplace OnePlanet and blockchain-based game Derby Stars.

Immediately following the Terra UST crash, Wyatt had even mentioned his intentions to assist Terra-based projects with capital and resources to enable a smooth migration to the Polygon’s ecosystem.

Wyatt announced intentions to assist Terra-based projects with capital and resources to enable them to migrate to the Polygon platform in mid-May, days after the collapse of the stablecoin creation-focused blockchain.

OnePlanet has even confirmed on the migration news, revealing that a total of 48 NFT projects have moved under the Ark*One rescue initiative. It even recently said that it is targeting mid-August as the tentative date for launch on Polygon’s ecosystem.

Additional Read: Top Crypto Prices Today

KEY TAKEAWAYS

  • One of the largest NFT projects, OnePlanet based on the Terra blockchain is now migrating to Polygon ecosystem
  • Polygon even open to provide funds and resources for smooth transition of OnePlanet to Polygon
  • Over 48 NFT projects under OnePlanet migrating to Polygon
  • Some of the other projects include Lunaverse, Hell Cats, DystopAI, GraviDAO, Arkadia and many others

TERRA LUNA CRASH EXPLAINED

Early in May 2022, the Terra blockchain ecosystem suffered a catastrophic collapse when its algorithmic dollar pegged stablecoin, now known as the TerraUSD Classic (USTC) lost its peg. This forced the native token, now known as Luna Classic (LUNC) to crash over 99% in value from over a hundred dollars to a few fractions of a cent.

In an effort to regain some confidence, Terra founder do Kwon launched a new platform, calling it Terra, with its native token named LUNA, while renaming the older one to Luna Classic (LUNC).

The final nail on the coffin was when validators on the Terra blockchain decided to officially halt all network activity in a move designed to prevent governance attacks following the severe devaluation of the native token LUNA. Terraform Labs’ official Twitter handle confirmed that the blockchain network was halted at a block height of 7,603,700.

To know more, read: Terra LUNA Crash

THE GREAT TERRA PROJECTS MIGRATION

So right after the crash that ensued after the algorithmic stablecoin lost its peg, the Polygon ecosystem eyed an opportunity and jumped at it. Just a few days after the crash, Polygon Studios CEO Ryan Wyatt announced his intentions to help Terra-passed projects to switch sides.

Having recently closed a near $450 million funding round with marquee investors led by Sequoia Capital India and several others, Polygon was all set to provide financial as well as technical assistance to all these Terra based developers onto their platform. This made business sense as a lot of ready made projects, developed by professionals would be quickly integrated into Polygon’s blockchain ecosystem thus attracting that ready made audience extremely quickly.

Additional Read: Polygon Selected for Disney Accelerator Program 

WHY IS ONE PLANET MIGRATING TO POLYGON ECOSYSTEM?

First we’ll need to understand what OnePlanet is trying to do here. In the migration process, OnePlanet, which was initially based on the Terra ecosystem has built its own version of Noah’s ark to saying the dying NFT projects wrecked on Terra. Known as Ark*One, it basically serves as a bridge for Terra based NFT projects to jump across into the Polygon ecosystem.

Eventually, Ark*One has grown to become much more than a salvage operation as the NFT universe is in dire need of a fully decentralised NFT launchpad and marketplace like OnePlanet. Under this joint venture between OnePlanet and Polygon Studios, a total of 48 NFT projects, encompassing 90 NFT collections have applied for the mass salvage operation. This number represents a very large proportion of project running on Terra, including a few that earlier had chosen to not launch on OnePlanet before the depegging incident.

Some of the projects who have chosen to migrate include P2E metaverse Lunaverse, the A.I. generated NFT universe DystopAI, as well as some of Terra’s more successful PFP collections, namely Hellcats and Babybulls. There are many more which are migrating under this proposed plan.

WHEN IS ONE PLANET MIGRATING TO POLYGON?

Now, OnePlanet is expected to complete the migration from Terra to Polygon somewhere in the middle of August, 2022.

NEXT STEPS FOR TERRA NFT HOLDERS?

In short, once the process is completed, Terra NFT holders will be able to link their Terra wallet address with a Polygon address to migrate any and all eligible NFT collections belonging to the projects that joined Ark*One. Point to note is that this process must be completed before OnePlanet launches their marketplace on Polygon.

After that, when finally OnePlanet launches its marketplace on Polygon, these holders will be able to trade their existing NFTs on the Polygon network with all existing members of the Polygon NFT community. While the OnePlanet team has promised to take care of the fees that need to be paid as transaction fees while migrating the NFTs over to the Polygon side, users will however need to acquire MATIC tokens themselves to actually trade on Polygon.

DERBY STARS POLYGON MIGRATION

Here’s another Terra based NFT collection, Derby Stars has begun the process to also migrate to Polygon after Terra’s devastating crash. For the process, they have announced that they will be opening a migration page through their website. Following that, community members will be able to send Derby NFTs to them. The Derby team will subsequently burn the Derby NFT on the Luna Classic Chain and issue the same NFT on Polygon to the user designated wallet addresses.


Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. In case you have any queries, write to [email protected].

The above information represent the independent views of Primestack Pte. Ltd, Neblio Technologies Pvt. Ltd, and/or their affiliate entities and are for informational & educational purposes only. The content, information or data provided above is not an offer, or solicitation of an offer, to invest in, or to buy or sell any interest or shares, virtual digital assets/ crypto products or securities, or to participate in any investment or trading strategy. Any statement or communication made above shall not be treated as a legal, financial, investment or tax advice by the reader. The calculations, data, risk-return formulations, performance or market capitalization indicators captured above are based on the independent data sourcing including collation of public information and/or analysis performed by analysts, advisors or employees of Primestack Pte. Ltd/ Neblio Technologies Pvt. Ltd and/or their affiliate companies and/or any third party. Past performance is not indicative of any future results. The reader(s) are hereby advised to consult their financial/ legal/ tax advisor(s) before making any investment.


 

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