In a surprising turn of events, the Terra Classic (LUNC) community has officially passed Proposal 11832, which proposes the burning of 800 million USTC tokens. This decision comes after a long and heated debate within the community as to the best course of action with these tokens.
While some members support freezing the tokens by blacklisting the Ozone Protocol wallet, others argue that this approach may cause significant delays in the burn process. Nonetheless, the passing of the proposal has caused a notable surge in LUNC prices.
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Proposal 11832 Gains Majority Approval from Terra Classic Community
The proposal to blacklist wallet TERRA1QYW695VAXJ7JL6S4U564C6XKFE59KERCG0H88W has successfully surpassed the required “pass threshold” following an influential “Yes” vote from top validator Allnodes. The voting results displayed a divided community opinion, with 54.07% in favor of the proposal, 30.51% opposed to it, 13.39% vetoing the proposal, and 2.03% abstaining from voting entirely.
Among the 52 validators that participated in the voting, a strikingly equal number of 21 supported the proposal, while another 21 voted against it. Notably, several well-known validators such as Hexxagon, LuncLive, LuncGoblins, and Solidvote opted to abstain from casting their votes. Their decision likely stems from the magnitude of the proposal and the intricacies associated with it.
One of the arguments in favor of blacklisting the wallet was articulated as follows: “Directly changing the blockchain state and destroying funds goes against the ethos of blockchain. Blacklisting allows for a reversible action, enabling fund recovery through governance if valid reasons are provided by the wallet owners.”
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Uncertainty Looms Over the Decision
Despite the majority vote in favor of blacklisting the wallet, members of the Terra Classic community remain uncertain about the consequences of this action. The debate centers around whether freezing the tokens is an appropriate and effective method to fulfill the burn. Critics argue that delays resulting from these measures may hinder the community’s efforts to achieve the desired outcome.
It is worth noting that previous attempts to persuade the wallet owners to transfer the funds to the community pool or initiate a direct burn through diplomatic means have failed. Consequently, the L1 development team is now preparing to execute the blacklisting process promptly.
Read Also: Terra Classic Rejects USTC Repeg Proposal as LUNC Burn Rate Rises Amid Falling Prices
LUNC Price Surge Reflects Market Optimism
Following the successful passing of the proposal, the prices of both LUNC and USTC have experienced a significant recovery amid the recent sell-off in the broader cryptocurrency market. The burning of 800 million USTC holds considerable importance for the USTC repeg and the revival of LUNC.
Over the past 24 hours, LUNC’s price has seen an increase, with the current trading price at $0.00005707. The Terra Classic community’s approval of the controversial proposal to burn 800 million USTC has introduced a new chapter in the ongoing discussions surrounding the fate of these tokens.
While the decision has sparked mixed reactions and uncertainties, it has undeniably boosted market confidence, as evident in the recent rise in the LUNC price.
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