Luna forked creating a new asset called Luna 2. Meanwhile existing Luna is called Luna Classic.
Between May 10th – 12th, the price of Luna collapsed as UST destabilized. Since the collapse, the idea of a Luna fork to create Luna2 has been floated.
There are Luna fork ideas from both the community and the founder of Luna Do Kwon, but the gist would be that a snapshot of Luna tokens currently held would be taken and then a new iteration of Luna would be created. Holders of Luna would then own both versions of the coin, although the foundation’s wallet would be cut out and the chain would be only owned by the community.
This would, ideally and in spirit, be like the fork that split Ethereum Classic and Ethereum after a hack of the system back in 2016. You can even vote on the fork yourself as a Luna holder.
1/ Terra governance prop #1623 to rename the existing network Terra Classic, LUNA Classic ($LUNC), and rebirth a new Terra blockchain & LUNA ($LUNA) is now live.
— Do Kwon 🌕 (@stablekwon) May 18, 2022
With that covered, it is notable that the official proposal of a fork by Do Kwon does not bring back UST. Also, it is worth noting that a fork that creates even two coins does not itself do much to bring prices back. It is not clear that forking Luna would raise the price of either iteration of the fork.
To stay updated, make sure to follow Do Kwon and useful hashtags like #terraluna on Twitter.
UPDATE: A fork did occur. This resulted in Luna 2 and Luna Classic.