Terra Classic Hikes LUNC Deposit to 5M to Ward Off Scams

Terra community puts up an initiative to combat spam, applauded by top on-chain validators.

Man performing Cardiopulmonary resuscitation on a sceleton in pieces.
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  • Terra Classic Community takes measures to battle rising crypto scams.
  • The new minimum deposit cap is hiked five times, citing a $LUNC price drop.
  • Prominent network validators applauded the scam prevention proposal.

The embattled Terra Classic community has penned a proposal to hike the minimum deposit on the Terra Classic chain. The minimum deposit is one million Terra Luna Classic (LUNC), equivalent to $57.23.

Parameter change proposal #11780 suggests that the spam proposals on the blockchain have significantly increased. To solve this issue, the proposal suggests raising the bar for a minimum deposit on the network to be eligible for proposals on Terra Classic Station to 5 million $LUNC.

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The proposal, live on Terra Classic Station, has a nearly unanimous 93.75% approval rate. The “Initiative to combat spam proposals by increasing minimum deposit amount to 5M LUNCgot the nod from Happy Catty Crypto, SolidVote, Lunanauts, and AllNodes. 

The proposal’s author argues the freefall of $LUNC and $USTC prices warrants the move: “Since the price of LUNC has dropped, 1M LUNC is no longer effective in combating these types of proposals.” Terra blockchain validator SolidVote added: “I don’t think it will have any effect on scam proposals, but it’s a sensible adjustment to make regardless,” referring to other security risks on the chain.

Terra Luna Classic Dips to 3-Month Low

Meanwhile, LUNC trades just inside the TOP 100 by global crypto market cap, bumping into a monthly low of $334 million and a record low price of $0.00005732. The struggling Terra Classic’s native coin traded traded in a descending triangle for the last three months.

In technical terms, $LUNC can break out of the rare falling wedge formation and go a nine-fold breakout run if $LUNC price holds above the critical support at $0.00058046. In a recent effort to maintain the falling Terra Classic’s price, the Layer-1 Joint Task Force (L1JTF) team is testing the restoration of the LUNC/USTC market swap function to dramatically reduce the circulating supply of both tokens.

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Despite this forecast by trader Javon Marks, the falling wedge pattern for LUNC is less likely, knowing that $LUNC has been trading below the aforementioned barrier for the last couple of hours, according to CoinGecko.

On the Flipside

  • Some blockchain experts on Twitter claim that the 5x hike on minimum deposit isn’t enough to tackle spam proposal issues, let alone other vulnerabilities on the Terra Classic chain.

Why This Matters

Terra Classic chain has a vast community of crypto enthusiasts eager to improve the chain.

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Tadas Klimasevskis

Tadas Klimaševskis is a Lithuanian journalist at DailyCoin, specializing in covering the lighter side of the crypto industry such as memecoins and pop culture in the metaverse. He has experience as a music artist, English language teacher, and freelance writer, and uses his creative writing skills to summarize valuable information in his work. He is also a strong believer in the potential of blockchain and spends his free time listening to music, traveling, and watching basketball games.