- LUNC, USTC face double-digit market correction after a 400% monthly run.
- The controversial proposal tackles the validator limit on Terra Classic’s chain.
- LUNC, LUNA merger talks surface on X as LUNC members cast their vote.
Terra Classic’s community recently passed Proposal #11888, even though the initiative had received mixed reactions from prominent chain members. The proposal aims to reduce the validator set on the Terra Classic chain, basing the decision on becoming a validator without “any serious efforts.”
According to the content of this proposal, the last currently active Terra validator has less than two million LUNC tokens delegated. Occupying the 113th spot, the aforementioned validator raised eyebrows from veteran members of the community, who argue that the minimum requirements for a trader to become a validator on-chain shall be upped to include only active validators.
The proposal passed its threshold with 31.69% “Yes,” hinting that a large chunk of the community has reservations about the upcoming validator cut.
LUNC, LUNA in Merger Talks: Will Traders Benefit?
In other related news, a dialogue between the two communities has been established, while some prominent developers like Will Chen suggest building a Terra Classic chain layer on top of the newly created Terra 2.0, which took up the LUNA ticker after Terra’s system crash in May 2022.
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Indeed, the veteran Terra developer pinpoints that Terra Classic has a vast and active community, which tends to democratically vote on the most mutually beneficial outcome via governance proposals, often igniting bull rallies for LUNC this way.
Other prominent members like Danny Demi DeFi set up a poll for Terra Classic community members to cast their vote on a possible merger. At the time of publication, 53.6% of voters on X agree that merging LUNC and LUNA would be a great idea, while 46.4% would rather keep the two Cosmos blockchains separate.
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LUNC trades at $0.00021712 at press time, sliding down by 12% in the last 24 hours. However, LUNC is still 221% up monthly, emerging as the top gainer of the month among TOP 50 altcoins by global market capitalization.
USTC whipped up 400% gains in the same time frame, briefly approaching seven cents on November 27, 2023. Despite the biggest run since the de-pegging happened, USTC is now back trading below five cents after the rumors of a cash inflow by MintCash UST 2.0 were debunked by USTC’s parent company, TerraForm Labs.
On the Flipside
- One camp of Terra Classic members argues that reducing chain validators brings the hazard of centralization and prevents the game-tested chain from growing further.
Why This Matters
Terra Luna Classic has been among the best-performing altcoins in Q4 of 2023.
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