Through governance, Terra’s validators make decisions that affect Terra’s destiny. A portion of their vote comes from their individual voices as delegators. Recently, there has been a proposal for a 1.2% tax burn on the Terra Classic (LUNC) network, which gained vast community support.
As is customary in the cryptocurrency industry, the so-called Terra Rebels simply made the tax update accessible rather than introducing it through a governance vote. They counted on the validators, who eventually made a move willingly.
Read Also: Terra Classic Launches New Solution to Burn LUNC Tokens Three Times More: Details
A group devoted to the development of the Terra Classic, TerracVita, announced in a tweet that it has teamed up with High Stakes Switzerland to launch a validator to raise funds for Terra Classic development efforts.
“Our volunteers have self-funded for four months, helping implement governance proposals, developing code, and restoring governance to give LUNC a chance of life. TerraCVita helps this by funding those members sustainably and others,”
Our volunteers have self funded for 4 months helping implement governance proposals, developing code and restoring governance to give #LUNC a chance of life.❤️@TerraCVita helps this by funding those members sustainably and others.
— TerracVita (@TerracVita) September 18, 2022
Being an autonomous organization, TerraCVita can generate funds and income and function as an entity with a validator. However, TerraCVita is entirely focused on the TerraClassicCommunity. They can use their voting rights to support the Terra community since it is not a governance-neutral organization.
Even though their members lead with code, they are all independent. So, they have no conflicts of interest with regard to governance neutrality.
Read Also: New Terra Classic Update: A Bold Plan to Restore USTC and Bring Utility to LUNC
Terra Classic Receives Community Support in Its Attempt to Regain Relevance
Many people believed Terra was doomed after the May crash of the UST stablecoin. Do Kwon, the controversial CEO of Terraform Labs, moved fast to launch a new Terra network, relegating his failure to the name “Luna Classic” and renaming the new chain’s native coin with the ticker LUNA.
However, attempts to resuscitate the original blockchain have made slow progress since Terra’s unfortunate fall. Despite Terraform Labs’ decision to stop supporting the chain, there was still enthusiasm for its advancement in June when a proposal to start burning a percentage of the Terra Classic transaction fees and jack up validator rewards surfaced. The proposal to burn 1.2% of all tokens transacted was approved by the Terra community, and it is expected to go live soon.
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