- Terra Luna Classic bounced back to mid-April levels in a 13.35% rally.
- The governance proposal to set a limit on validator nodes gets dismissed.
- Despite slowing down, LUNC burns cut the remaining supply to 5.79T.
Last weekend, Terra Luna Classic (LUNC) rejected a key governance proposal to prevent the chain’s validators from launching multiple validators on the network. Proposal #12101 seeks to impose a single-validator rule, which has been called “un-actionable” and “pointless” by certain validators like SolidVote.
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While most members agree the proposal to limit validator nodes has good intentions, the strategy would be hard to realize because Terra chain validators can simply ignore the implemented rules. Breaking down the voting results, almost 38% of Terra Classic community members voted ‘Yes’, while 37% voted ‘No’, and another 21% vetoed the proposal.
Despite the Terra Luna Classic community being divided into two camps over LUNC chain validator policy, the embattled Layer-1 altcoin inked 8.6% gains to trade at $0.0001162 as of press time. While the validator limit proposal tackles centralization issues due to unlimited validator nodes, a resubmission of the proposal is likely soon.
Black Swan Survivor LUNC Surges 13%
Coinciding with Terra’s malfunctioning stablecoin Terra Classic USD (USTC) massive 28% spike to $0.0233, LUNC’s price trajectory received a significant boost on May 2, scorching above the $0.0001 confluent support line after dropping below this decisive price range on April 30.
Thanks to Binance’s LUNC burning contributions, the circulating LUNC supply is now heavily reduced, with 5,799,402,152,117 LUNC tokens left in circulation. Binance’s latest monthly burning ceremony saw 1.5B LUNC tokens destroyed, but the effort was significantly smaller than the cumulative burns executed in April.
The 140% upswing in Terra Classic’s 24-hour trading volume contributed towards the surge, and LUNC added $100 million to its global market cap since May 2. The milestone was followed by an overbought condition on LUNC’s trading charts, as this indicator points to 75.12. Volatility-wise, the tight Bollinger Bands are gradually widening, implying that LUNC price volatility will likely expand in the coming days.
On the Flipside
- LUNC hasn’t been able to restore a $1 billion market capitalization since March 15, 2024, then catching up on early Spring’s memecoin season.
- TerraForm Labs, the original issuer of Terra Luna coins, went bankrupt earlier this year after the UST crash lawsuit was filed in favor of the SEC.
Why This Matters
Governance proposals are an efficient way to improve the blockchain, as voting rights are given to the largest holders and contributors on the network.
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