- LUNC community proposal #12033 seeks to make KYC mandatory for devs.
- The unusual ask raised eyebrows among prominent validators and stakers.
- Despite new safety measures, voters argue that KYC will scare away devs.
On Wednesday, the huge community of Terra Luna Classic holders will cast their votes on a governance proposal that could serve as a game-changing moment for the battle-scarred Layer-1 blockchain. While the proposal is close to being passed, the vote distribution hints at key community members being split into two factions.
According to the content of proposal #12033, live on the Terra Station until February 8, 2024, the upcoming developer work on the blockchain must only be done by verified developers. In other words, the description of the communal offer suggests that only developers with known identities shall proceed with various LUNC community initiatives.
The author of this proposition, SolidVote, has insisted that the current situation brings “serious risk” to the chain. The prominent validator argues that since anyone can work on building decentralized applications (dApps) on Terra Classic’s chain, the biggest hazard underlies if an anonymous developer decides to short Terra Luna Classic.
Why Terra Classic’s KYC Proposal Gets Intense Backlash
Prominent validators and stakers of the Terra Chain have very different takes on the proposal. Danny Demi DeFi appealed to the public with a rhetorical question: “We don’t want to be a weird Trad Fi Boomer Coin, do we???” basing his stance on the presumption that a Layer-1 KYC would “scare away the best and brightest.”
Several prominent network validators, including Coach Bruce Wrangler and Danny Demi DeFi, backed Danny’s opinion. Terra Classic’s prominent member Coach Bruce went as far as to sarcastically offer $1,000 for LUNC validators to change their mind about voting ‘Yes’ on the proposal. The validator claims that seven fellow members have already accepted the offer.
However, proposal #12033 is about to reach the acceptance threshold, less than 20 hours before it expires. The voting by the LUNC community has contributed towards Terra Luna Classic spiking by 2.5% on the daily charts.
On the Flipside
- Part of the crypto community believes that one of the biggest blockchain technology advantages is the ability to remain anonymous.
- While implementing the KYC aligns well with the pay-per-job mechanism, verified developer identity is still an unusual practice in crypto.
Why This Matters
Developers with verified identities could assist in restoring transparency and trust but could also be detrimental to Layer-1’s growth if the top contributing validators decide to ditch the chain.
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