The vibrant Terra Classic (LUNC) community is gearing up for a historic comeback with its different strategic moves. In a recent proposal, filed by Max Callisto, one of the CEOs of LUNC DAO, the community has fronted the idea of re-enabling IBC transfers between Terra Classic and the rest of Cosmos chains.
It is worth noting that LUNC has been among the top performing cryptos in the past weeks following the activation of the 1.2% tax burn on all LUNC transactions, by several top exchanges like Huobi, Kucoin, MEXC Global, etc.
Proposal To Re-Enable IBC Transfers on Terra Classic
To further stimulate the trading activity for LUNC and USTC, the community has made a move to re-enable the disabled Inter Blockchain Communication (IBC) protocol on the Terra Classic chain, thereby making it interoperable with other Cosmos chains. Of course, this comes with a lot of benefits for the Terra Classic community.
As one of @LUNCDAO CEOs, reopen the IBC gates of Terra Classic! @terrac_money
p.s. Burn $LUNC & $USTChttps://t.co/MmmcbSAeIH— Max Callisto (@MaxCallisto) September 12, 2022
In May, Do Kwon’s TerraUSD (UST), the top algorithmic stablecoin with a huge market cap at that time, lost parity (de-pegged) with $1. This led to a free fall in the price of UST and its sister token, LUNC (which was called Luna at that time).
Due to this crash, Inter Blockchain Communication (IBC) protocol, which allowed the Terra Classic chain to interact with other chains like Cosmos was disabled. However, this action was taken by the team in a bid to guard against impermanent losses on UST and LUNA pools on Osmosis and other IBC DEXs.
Related: Here’s the Latest from Binance Regarding the Implementation of Terra Classic (LUNC)
In a recent issue, Max Calisto submitted a proposal, citing the associated benefits of re-enabling IBC transfers on Terra Classic. Worthy of note is that Terra Classic upgrades are now managed by a non-TerraForm Labs developer group known as TerraRebels. “It’s a good time to revisit this again since Terra Classic has a vibrant community that will benefit the rest of the Cosmos chains,” Callisto added.
The enabling of IBC will equally allow for the trading of LUNC and USTC on Osmosis, Sei, Kujira, or Terra2. Importantly, creating this link with the Cosmos chain will help in boosting and bring back liquidity to the Terra chain for other uses.
According to Max Callisto, “IBC being disabled on Terra Classic will only continually isolate Terra Classic from the rest of the Cosmos chains. There’s close to $1mil liquidity on Osmosis for both LUNC & USTC pools that aren’t able to find their way back to Terra Classic except going through CEXes.”
“There’s ~$27m LUNC + UST trapped on Osmosis since May due to the IBC being down. I fully support this proposal. Having spent a good while looking into this issue, details were not easy to find, what I’ve learned is set out in my Reddit post with thanks to Terra Rebels for filling in many blanks,” a LUNC community member named Alesi Sanchez commented.
So far so good, the endorsement of this IBC proposal by the LUNC community is growing and there is every likelihood that it will pass.
TerraForm Labs Supports 1.2% LUNC Tax Burn
To reduce the circulating supply of the community-led crypto token, Terra Classic (LUNC), a proposal to activate a 1.2% tax burn on all LUNC transactions was rolled out and later adopted. While MEXC Global was the first centralized exchange to implement the initiative by rolling out a 5-day burn event, top centralized exchanges like Huobi and Kucoin have followed suit.
Read Also: Top Exchange Burns Over 154.8 Million Terra Classic (LUNC) Tokens in 5 Days: Detail
Per a Monday update by Rex, a Terra Classic developer and member of TerraRebels, pull request 101 has been officially merged. This indicates that Terraform Labs (TFL) has given its backing to the proposal although it is currently undergoing voting.
#LUNC community, PR #101 is officially merged.
Source: https://t.co/szh9DEsUo2 pic.twitter.com/ViSX49ah9B
— reXx™ (@reXxTerraRebels) September 12, 2022
“These changes aim to implement the burn tax as voted on Classic governance proposal 3568 and currently undergoing vote in proposal 4661 in all Station views and gas fee calculations on the classic network only. Tax rates will only be displayed on the classic network once the burn tax is activated, and it will not affect any other TXs on different networks,” MarventusWP wrote.
Follow us on Twitter, Facebook, Telegram, and Google News
