The Terra (LUNA) project team explained through Twitter that the blockchain is not undergoing a hardfork but rather that Terra 2.0 will serve as the genesis of a new blockchain.
The Terra team described a hardfork as a modification to an existing blockchain that results in two chains with a shared past but different futures.
Importantly, they noted that a forked blockchain shares its whole history with the original (chain), but Terra 2.0 would not.
Terra 2.0 is the genesis of a new blockchain.
If Proposal 1623 succeeds, a new blockchain (Terra) will be formed from genesis block 0 that will not share history with Terra Classic.
Additionally, the developers noted that popular decentralised apps created on Terra Classic would not exist automatically on the new Terra chain (LUNA). The Dapps must be moved to the new blockchain.
At the time of this writing, just twenty hours remain before Terra Proposal 1623 voting closes. According to Terra Station, 77% of all votes have been cast in the Terra community. Moreover, 65.99% of voters support the proposal.
Votes on Terra Proposal 1623 with 20 hours left. Source, Terra Station.
In all likelihood, Terra proposal 1623 to establish the new chain will succeed as it has exceeded the pass threshold of 50% and been without the 33% veto threshold.
However, the project’s future may be in jeopardy due to rumours that South Korean authorities want to freeze the Luna Foundation Guard’s assets. The following conclusion has been reached by @FatManTerra, a member of the Terra Community, on the probable repercussions of an early seizure of the LFG’s assets.
If LFG assets are frozen by the police too soon, the small holder refund that they guaranteed may not take place.
Let’s hope bureaucracy drags its feet on this one, at least for the time being. I have been contemplating several matters (albeit sleep-deprived) – more to come soon.