The luna 2.0 airdrop was a token compensation event run by Terraform Labs in May 2022. It distributed new LUNA tokens to holders of original Terra blockchain assets across four eligibility classes, using two snapshot dates and vesting schedules of up to two years. A total of 300 million LUNA tokens were set aside for the pool.
- Key Takeaway 1: Two snapshots were used: pre-attack (May 7, 2022) and post-attack (May 27, 2022).
- Key Takeaway 2: Four holder classes received allocations: pre-attack LUNA holders, pre-attack aUST holders, post-attack LUNA holders, and post-attack UST holders.
- Key Takeaway 3: A total of 30% of the new LUNA supply (out of 1 billion tokens) was set aside for the airdrop pool.
- Key Takeaway 4: Vesting ranged from immediate unlocks to a two-year schedule depending on holder class.
- Key Takeaway 5: Indian recipients owe 30% VDA tax on the fair market value of received tokens under India’s crypto tax rules.
What Was the Luna 2.0 Airdrop and Why Did It Happen?
In May 2022, the original Terra blockchain collapsed after its algorithmic stablecoin UST lost its dollar peg. LUNA, the chain’s native token, fell from roughly $80 to fractions of a cent in days, wiping out an estimated $40 billion in market value according to data tracked by CoinGecko at the time of the crash.
Terraform Labs founder Do Kwon proposed a chain revival plan: abandon the old chain (now called Terra Classic, ticker LUNC), launch a new blockchain called Terra 2.0, and distribute its native token through a luna 2.0 airdrop to those who held assets on the original chain. This luna airdrop was framed as partial compensation, not a full refund. It was one of the largest token compensation events in crypto history.
The new chain went live on May 28, 2022. According to the official Terra governance proposal (Proposal 1623), 1 billion new LUNA tokens were minted at genesis, and 30% of that supply, or 300 million LUNA, was allocated to the luna 2.0 airdrop pool.
Pre-Attack vs Post-Attack: What Did These Terms Mean?
“Pre-attack” referred to holders who owned Terra assets before the de-pegging crisis began. The snapshot for this group was taken at Terra Classic block 7,544,914, which corresponds to approximately May 7, 2022, before UST began losing its peg significantly.
“Post-attack” referred to holders who bought or held assets during or after the collapse. The snapshot for this group was taken at Terra Classic block 7,790,000, which corresponds to approximately May 27, 2022, just before the new chain launched.
The distinction mattered because pre-attack holders received more favourable allocations under the luna 2.0 airdrop rules. Buying LUNA or UST after the crash at depressed prices and then receiving airdrop tokens at a better ratio was a known risk the protocol tried to limit by using two different snapshot dates.
Luna 2.0 Airdrop Eligibility and Allocation by Holder Class
The terra 2.0 airdrop was split across four groups. Each group received a different share of the 300 million LUNA airdrop pool. The table below shows the verified allocation breakdown from Terra’s genesis plan.
| Holder Class | Asset Held | Snapshot Date | Airdrop Allocation (% of Pool) |
|---|---|---|---|
| Pre-attack LUNA holders | LUNA (Classic) | ~May 7, 2022 (Block 7,544,914) | 35% |
| Pre-attack aUST holders | aUST (Anchor Protocol) | ~May 7, 2022 (Block 7,544,914) | 10% |
| Post-attack LUNA holders | LUNA (Classic) | ~May 27, 2022 (Block 7,790,000) | 10% |
| Post-attack UST holders | UST (Classic) | ~May 27, 2022 (Block 7,790,000) | 45% |
Source: Terra Ecosystem Revival Plan 2, Terraform Labs governance documentation, May 2022.
Post-attack UST holders received the largest share of the pool at 45% because UST was the stablecoin most retail users held, and they suffered losses closest to the face value of a dollar-pegged asset. Pre-attack LUNA holders, who held the governance token before the crash, received 35% of the luna 2.0 airdrop pool.
How Was the Luna 2.0 Airdrop Calculated for Each Wallet?
Your individual allocation depended on your proportional share within your holder class. If you held 0.01% of all pre-attack LUNA in circulation at the snapshot, you received 0.01% of that class’s 35% pool allocation. According to Terra’s genesis documentation, wallets holding fewer than 10,000 pre-attack LUNA or fewer than 10 UST were excluded from the luna airdrop to prevent gas-cost inefficiency on small distributions.
Centralised exchanges like Binance and Kraken handled distribution for users who held assets on their platforms. Indian exchanges including WazirX, CoinDCX, and ZebPay also credited eligible users, though the timeline varied by platform. If you held LUNA or UST in your own Terra Station wallet at the snapshot blocks, you could claim directly through the Terra Station interface.
Luna 2.0 Airdrop Vesting Schedule
Not all airdropped tokens were immediately liquid. The vesting terms under the luna 2.0 airdrop were tied to your holder class, as shown below.
- Pre-attack LUNA holders: 30% unlocked immediately at genesis; remaining 70% vested over two years with a six-month cliff.
- Pre-attack aUST holders: 30% unlocked immediately; remaining 70% vested over two years.
- Post-attack LUNA holders: No immediate unlock; 100% vested over two years.
- Post-attack UST holders: 30% unlocked immediately; remaining 70% vested over two years.
The two-year vesting window from the May 28, 2022 genesis date ended in late May 2024. As of July 2026, all vesting periods under the original schedule have concluded. Any tokens not yet claimed from the original airdrop contract may be subject to expiry rules set by Terra chain governance. Users who have not checked their wallets since 2022 should do so urgently.
Is the Luna 2.0 Airdrop Still Claimable in 2026?
The short answer is: it depends on where you held your assets. For on-chain wallets, the luna 2.0 airdrop tokens were distributed directly to eligible addresses at genesis or as vesting unlocked. If you held a Terra Station wallet, your tokens should already be in your wallet, assuming you have connected to the Terra 2.0 network rather than the Terra Classic network.
For exchange-held assets, most major platforms completed their distributions by late 2022. If your exchange balance never showed the airdrop credit, contact the exchange’s support team directly. CoinDCX and ZebPay both issued communications to eligible Indian users at the time of the original luna airdrop distribution.
New LUNA briefly touched around $19 shortly after its post-launch peak in mid-2022, according to CoinGecko price history. It has traded significantly lower since. You can check current LUNA prices and buy or sell on Indian platforms; see our guide on where to buy LUNA crypto in India for a platform comparison.
Crypto investments carry significant risk. The value of LUNA has fallen sharply from post-launch highs. Past compensation events do not guarantee future value. Always consult a financial advisor before investing.
Did the Luna 2.0 Airdrop Actually Compensate UST Holders?
Realistically, no. The compensation was partial at best. UST holders who lost money at the $1 peg received LUNA 2.0 tokens, but the value of those tokens was a fraction of their original loss. A holder who lost $10,000 in UST received LUNA tokens worth a few hundred dollars at best, and far less if they waited for vesting to complete as the price continued to fall.
Multiple class-action lawsuits were filed against Terraform Labs and Do Kwon globally after the collapse. Do Kwon was arrested in Montenegro in 2023 and faced extradition proceedings. The U.S. SEC also took enforcement action against Terraform Labs. These legal developments did not change the economics of the luna 2.0 airdrop itself, but they are part of the broader record of this event.
India Tax Treatment of the Luna 2.0 Airdrop
If you received luna 2.0 airdrop tokens as an Indian resident, the Income Tax Department treats them as income from Virtual Digital Assets (VDAs). Under Section 115BBH of the Income Tax Act, introduced in the Union Budget 2022, all VDA income is taxed at a flat 30% rate with no deductions allowed, except the cost of acquisition. SEBI has not issued specific guidance on airdrop classification, but the Income Tax Department’s VDA framework applies regardless of how the tokens were received.
The taxable event occurs at the point of receipt. The fair market value of the LUNA tokens on the date they were credited to your wallet is your income for that financial year. If you later sell those tokens, any gain is again taxed at 30%, and the buyer deducts 1% TDS if the transaction happens on an Indian exchange. Read our detailed breakdown in the crypto tax in India guide for filing specifics.
Many Indian investors who received the luna airdrop may not have declared it in their ITR filings for FY2022-23. The tax department has been increasingly scrutinising exchange data, so it is advisable to consult a crypto-aware chartered accountant if you are unsure about your liability.
Want to understand how airdrops work more broadly before diving deeper? Our explainer on what airdrops are in crypto covers the basics, and our crypto airdrop guide for 2026 covers current opportunities across the market.
Frequently Asked Questions
Who was eligible for the Luna 2.0 airdrop?
Anyone who held LUNA (Classic), aUST, or UST on the Terra Classic blockchain at either the pre-attack snapshot (around May 7, 2022, block 7,544,914) or the post-attack snapshot (around May 27, 2022, block 7,790,000) was eligible for the luna 2.0 airdrop. Exchange users on platforms like Binance, CoinDCX, and WazirX were also included if their platform participated in distribution.
How was the Luna 2.0 airdrop amount calculated per wallet?
Your allocation was proportional to your share of holdings within your holder class at the relevant snapshot block. Pre-attack LUNA holders collectively received 35% of the 300 million LUNA airdrop pool, and each individual received a slice of that 35% based on how much LUNA they held versus the total supply at snapshot.
What was the difference between pre-attack and post-attack Luna for airdrop purposes?
Pre-attack refers to holdings before UST began losing its peg, around May 7, 2022. Post-attack refers to holdings captured after the crash, around May 27, 2022. Pre-attack holders generally received better allocation ratios under the luna 2.0 airdrop rules because they held assets before the collapse, not at distressed post-crash prices.
What happened to unclaimed Luna 2.0 airdrop tokens?
All vesting periods under the original two-year schedule ended by May 2024. Tokens distributed to Terra Station wallets remain accessible as long as the wallet is connected to the Terra 2.0 network. However, unclaimed on-chain tokens may be subject to future governance decisions by the Terra 2.0 community. If you have not checked your wallet since 2022, do so immediately.
Do Indian investors pay tax on the Luna 2.0 airdrop?
Yes. Under India’s VDA tax rules, airdropped tokens are treated as income and taxed at 30% on their fair market value at the time of receipt. There is no exemption for compensation airdrops. If you later sell the tokens, gains are taxed again at 30%, and 1% TDS applies on exchange transactions. Consult a chartered accountant for accurate ITR filing.
Last updated: July 2026. Reviewed by the CryptoWire editorial team.
