LUNA Airdrop Rules and Compensation Plan Explained

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The collapse of the Terra ecosystem in May 2022 sent shockwaves across the crypto market, impacting millions of users globally. In response, major platforms, including OKX, implemented structured compensation plans to support affected users. This article provides a comprehensive overview of the LUNA airdrop rules, eligibility criteria, distribution schedules, and key timelines — all based on official announcements and blockchain data.

Whether you're a former LUNA holder, UST staker, or participated in yield-earning programs like aUST, this guide clarifies how compensation was structured and when new tokens were distributed.

Understanding the Two Critical Snapshot Periods

To ensure fair distribution, OKX established two separate snapshot periods — one before the network attack and one after. These snapshots determined user eligibility for receiving LUNA (new) tokens as part of the recovery plan.

1. Pre-Attack Snapshot

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This snapshot targeted users who held LUNA or converted UST into aUST via staking before the crash. The aUST token represents locked UST on the Terra Classic chain, meaning users who participated in yield-generating activities through platforms like OKX Earn qualified under this category.

2. Post-Attack Snapshot

This second snapshot aimed to include users who still held assets after the collapse but were impacted by price devaluation and network instability. All users with either old LUNA or old UST in their wallets during this moment were eligible for compensation.

Compensation Categories Based on Holdings

OKX segmented compensation into distinct tiers based on the amount of old LUNA held during the pre-attack snapshot. This tiered approach ensured scalability and long-term sustainability of the recovery plan.

For Users Holding Less Than 10,000 Old LUNA Tokens

These users received:

This immediate partial release helped provide liquidity while preserving long-term value stability.

For Users Holding Between 10,000 and 1 Million Old LUNA Tokens

This mid-tier group also received:

The staggered release minimized market pressure from large-scale sell-offs.

For Users Holding 1 Million or More Old LUNA Tokens

High-balance holders faced an extended vesting schedule:

This decision reflected risk management principles, aligning incentives with ecosystem recovery rather than short-term speculation.

Special Case: Earn Program Participants (Staking UST or LUNA)

Users who staked UST or LUNA through OKX Earn — particularly those earning via aUST — were included in the compensation plan.

Note: UST holdings exceeding 500,000 were capped at 500,000 for calculation purposes. This measure ensured equitable distribution across a broader user base.

These participants qualified under the pre-attack snapshot, with distributions following the same schedule as low-to-mid tier LUNA holders:

Because aUST is a direct representation of locked UST on-chain, OKX recognized it as valid proof of participation in the Terra ecosystem.

Token Distribution: What Was Issued?

All eligible users received LUNA (new) tokens — not refunds in fiat or other cryptocurrencies. This choice emphasized commitment to blockchain-based recovery and allowed users to re-engage with renewed DeFi opportunities.

Distribution phases:

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This phased model balanced urgency with sustainability — a best practice now referenced across the industry for future crisis responses.

Frequently Asked Questions (FAQ)

Q: What is the difference between LUNA (old) and LUNA (new)?

A: LUNA (old) refers to the original Terra token that collapsed in May 2022. LUNA (new) is part of the reborn Terra chain (now known as Terra 2.0), launched without algorithmic stablecoin dependencies. The airdrop was designed to compensate holders of the old token with shares in the new ecosystem.

Q: Why was there a cap on UST holdings for earn program participants?

A: The 500,000 UST cap ensured broader fairness. Without it, a small number of large stakers could have dominated the compensation pool. The limit allowed more users to receive meaningful support.

Q: When did monthly distributions begin for long-term vesting?

A: For most users, monthly releases started in December 2022. For high-balance holders (≥1M old LUNA), disbursements began in June 2023 and continued over four years.

Q: Can I still claim missed airdrop tokens?

A: No. All distributions concluded according to the published schedule. Users needed to have assets in their accounts during the official snapshots to qualify.

Q: Was UST included in both snapshots?

A: Yes. While LUNA was central to eligibility, UST holders — especially those with aUST — were included in the pre-attack snapshot. All UST and LUNA holders were covered in the post-attack snapshot.

Q: How did OKX verify eligibility?

A: OKX used blockchain-level data from the specified block heights. Internal records aligned with on-chain wallet balances at those precise moments, ensuring transparency and accuracy.

Final Notes on Fairness and Transparency

OKX’s approach to the LUNA airdrop prioritized user protection, market stability, and long-term trust. By implementing tiered vesting, capping excessive claims, and including staking participants, the exchange demonstrated responsible stewardship during one of crypto’s most turbulent periods.

The integration of aUST into the eligibility framework showed forward-thinking — acknowledging that modern crypto users often interact with protocols through yield products rather than direct ownership alone.

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As the digital asset space evolves, such frameworks may become blueprints for future user protection models — blending technical precision with empathetic design.

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