The Terra Classic (LUNC) community is currently voting on a proposal designed to strengthen its blockchain network, reduce validator churn, and enhance overall security. Proposal 12089, currently under vote within the Station wallet, advocates for the reinstatement of a 5% minimum commission for network validators.
Validator Support and Motivation
This proposed change comes in response to a decline in the number of active validators over the past five months. The financial burden of operating nodes has caused some, like PFC, TMOM, and Lux Blockchain, to exit the network.
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Furthermore, several validators have ceased operations without notifying delegators, resulting in approximately 22 billion LUNC tokens being staked with now-jailed validators. The proposal aims to reverse this trend by ensuring validators receive adequate compensation for their critical role in network security.
Benefits of the Proposal
Beyond bolstering network stability, reimplementing a minimum commission offers several additional benefits. Delegators (those who stake LUNC) would likely see gains, and the network would become more resistant to potential Sybil attacks, where an attacker attempts to dominate the network via multiple nodes.
At the time of writing, support for the proposal is strong, with 81% of votes cast in favor of the proposal. Key validators, including Interstellar Lounge, StakeBin, and LUNC Development Fund, are aligned with the “Yes” vote.
LUNC Background and Ecosystem
Terra Classic (LUNC) is the remnant of the original Terra blockchain, which experienced a dramatic collapse in May 2022. Despite the setback, the community has rallied to rebuild and revitalize the project.
A core aspect of its revival strategy includes upgrades to enhance network functionality and attract developers. Notably, the recent v1.0.5 upgrade has been well-received by the LUNC community, and as we reported earlier, a major upgrade to version 2.4.0 is underway.
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Read Also: Terra Classic Sees Massive Surge in Transaction Volume, As LUNC Price Signals Revival
Market Response: LUNC and USTC
Recent price volatility in LUNC and its sister token, USTC, suggests some profit-taking behavior. According to CoinMarketCap, after a brief rally, LUNC is currently trading at $0.0001955, with a 24-hour increase of 1.66%.
USTC continues to hover near $0.03621, experiencing price fluctuations throughout the week. Market consolidation is expected to continue in the short term, pending the outcome of upcoming upgrades planned for March, and the broader cryptocurrency market sentiment.
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