The Terra Classic (LUNC) community has spoken loud and clear, rejecting proposal #12095, a critical proposal that aimed to increase gas fees by 10x within the ecosystem. While the proposal initially garnered some support, concerns over its impact ultimately led to its downfall. This shift in sentiment has also impacted the price of LUNC, the native token of Terra Classic.
Steep Gas Fee Hike Opposed
The proposal to increase gas fees by 10x was introduced as a potential measure to revive the Terra Classic ecosystem. However, the Terra Classic community voiced strong opposition through various channels, including an X post by the LUNC community channel voicing its concerns and pushing against the proposal.
Read Also: Machine Learning Model Predicts Terra Classic (LUNC) Price for March 31, 2024
Community members expressed anxieties that the fee hike would:
Stifle Ecosystem Growth: Increased gas fees could discourage new users and developers from joining the Terra Classic network, hindering its overall growth potential.
Limit dApp Adoption: Decentralized applications (dApps) built on Terra Classic could become less attractive due to higher transaction costs, potentially leading to a decline in usage. Stellar (XLM) recently launched smart contracts on its mainnet and the fee hike will hurt LUNC as the competition for smart contract adoption and dApp development grows.
Burden End-Users: Users would face a significant rise in the cost of interacting with the Terra Classic blockchain, making everyday transactions more expensive.
These concerns resonated with a significant portion of the community, reflected in the final vote results:
YES: 44.83%, NO: 6.32%, NO (VETO): 35.31%, and ABSTAIN: 13.54%
The proposal ultimately failed to garner enough support, with a combined 41.63% voting against the increase or vetoing it entirely.
We are on twitter, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) July 15, 2023
Read Also: Google Bard Predicts Terra Classic (LUNC) Price Should Bitcoin Hit $200,000 After Halving
The Negative Impact on LUNC Price
Initial positive reactions to the proposal led to a temporary surge in LUNC’s price. However, with the proposal’s rejection, the price of LUNC has experienced a reversal. At press time, the digital asset is trading at $0.0001043, reflecting a 36.57% decline over the past month. LUNC has also dropped 6.29% in the past 24 hours, and its trading volume has dipped by 37.06%.
While the gas fee increase proposal did not pass, the Terra Classic community remains active. They have approved other key proposals, and many community members believed this controversial proposal posed too many disadvantages to the ecosystem. The community can now focus on beneficial proposals in their restoration efforts.
Follow us on Twitter, Facebook, Telegram, and Google News
