Terraform Labs announced on Twitter yesterday that Terra has launched a new blockchain at 06:00 UTC on the newly-named Phoenix-1 mainnet. A token airdrop accompanied the launch of Terra 2.0 for previous LUNA and UST holders to revive the ecosystem.

The launch and airdrop are an attempt to resuscitate the Terra community in the wake of the recent crypto crash, where LUNA depegged from the dollar, devaluing its linked UST stablecoin and erasing $40 billion dollars of value.

Terraform’s co-founder and CEO Do Kwon laid a plan to revive the network without including an algorithmic stablecoin, suggesting a distribution of a new token because “the Terra ecosystem and its community are worth preserving.” Although the plan was initially met with hesitation from the community, it soon picked up with a dozen major validators signing their support the next day.

Receiving no tokens from the drop, Terraform reimbursed past holder investment by allocating 70% of the new token to previous LUNA, UST, and aUST holders, and 30% to Terra’s community pool, an on-chain treasury fund controlled by Terra governance. Eligible addresses could claim the airdrop through the Terra website as well as several major exchanges. 30 million are also assigned to developers who have decided to remain and rebuild on the Terra 2.0 chain.

After the airdrop, LUNA and UST have been renamed LUNA Classic (LUNC) and UST Classic, while the original network is now called Terra Classic. The new Terra chain exists without an algorithmic stablecoin and comes with a fixed total of 1 billion LUNA 2.0 tokens, which will trade separately from the LUNA Classic tokens, whose supply amounts to more than 6.5 trillion.

Although the blockchain launch and airdrop are expected to revive the ecosystem, Kwon still faces charges of fraud and possible criminal exposure. He was handed a $78 million fine by South Korea’s National Tax Service for tax evasion, and South Korean authorities are currently investigating him for possibly running a Ponzi scheme.