Terra Classic (LUNC) and Osmosis IBC Channel Reopened: Here’s the Significance

Terra Classic developers continue to onboard more development as the team seeks to initiate a historic comeback for the fallen LUNC token.

As updated by Terra Rebels, the independent group of developers working on the growth of the Terra Classic project, the Inter Blockchain Communication (IBC) channel between LUNC and Osmosis was reopened earlier today. 

Rex Harrison, a top TerraCVita member confirmed the update, sharing a screenshot of a successful IBC transfer. On the other hand, several other users reported some encountered issues. While a certain Twitter user EU_FDA wrote, complaining of wallet address issues, another user, Kayak King reported about the delay in transaction completion.

Among the three IBC channels listed in the reopening proposal by Edward Kim, the Osmosis chain was said to hold the most trapped assets. The reopening of the IBC channel between LUNC and Osmosis, therefore, entails that trapped Terra Classic and USTC tokens on Osmosis can now flow into the Terra Classic chain and vice versa.

Another significance associated with this development is that the LUNC market swap mechanism on Osmosis has been enabled. 

To note, Osmosis is the popular Cosmos blockchain decentralized exchange. Following the meltdown of the Terra ecosystem in May, several IBC channels were deactivated, causing huge amounts of LUNC and USTC assets to be trapped outside of the Terra Classic chain. 

Read Also: Do Kwon Is Set To Integrate Terra Classic (LUNC) and Cosmos Chain Projects into Terra Station: Details

Among the IBC channels turned off were Juno, Crescent, and Osmosis. To this end, Edward Kim, a top developer, and contributor in the Terra Classic community published a proposal in November to reopen the three channels. It is worth noting that the proposed date for the IBC channel activation was December 5, 2022. 

However, Terra Classic developers decided to fast-track the reopening of the IBC channel between LUNC and Osmosis considering the incessant changes in the Cosmos ecosystem and the broad testing required to reach technological parity.

As reported, voting on the proposal began a few days after Kim published it. Given that the proposal aims to boost the embattled Terra Classic ecosystem, it received the enormous support of community members and eventually passed.

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