The Terra Luna Classic community recently rejected a proposal to increase the validators set to 130 on the blockchain. This decision follows the settlement between Terraform Labs and Do Kwon with the U.S. SEC for $4.5 billion. The proposal, known as Proposal 12116 “Increase Validator Active Set to 130,” failed to reach the pass threshold in the governance voting, receiving only 30.59% “Yes” votes. Despite the proposer’s belief that expanding the validator set would strengthen decentralization and benefit the LUNC community, the majority of voters disagreed.
The rejection of the proposal led to a surge in the prices of LUNC and USTC tokens within the Terra Classic ecosystem. LUNC price saw a significant increase of more than 10% in 24 hours, currently trading at $0.00008246. On the other hand, USTC price also jumped more than 5%, with the price trading at $0.0181. Both tokens experienced a rise in trading volume and futures open interest, indicating a possible market reversal.
Despite the rejection of the proposal, the Terra Luna Classic community remains focused on enhancing the network’s decentralization and strengthening the LUNC ecosystem. The community’s decision to maintain the validator limit at 100 reflects a cautious approach in the wake of recent developments with Terraform Labs and the U.S. SEC. The community’s commitment to governance and decision-making processes highlights the importance of consensus and collaboration within the ecosystem.
LUNC futures open interest increased by 24% following the rejection of the proposal, signaling renewed interest and activity within the Terra Classic ecosystem. The voting results also showed a significant percentage of “No” and “Abstain” votes, indicating a diversity of opinions among community members and validators. The involvement of top delegates and validators in the governance process underscores the democratic nature of the Terra Luna Classic community.
The surge in LUNC and USTC prices defied market sentiment, with both tokens experiencing notable gains despite challenges faced by the ecosystem. The positive price action reflects investor confidence in the long-term potential of the Terra Classic ecosystem and its underlying tokens. As the community continues to navigate through governance proposals and regulatory challenges, the resilience of the Terra Luna Classic community becomes increasingly evident, paving the way for future growth and development.
In conclusion, the rejection of the proposal to increase the validators set on the Terra Luna Classic blockchain reflects the community’s cautious approach in light of recent events. The surge in LUNC and USTC prices following the rejection highlights investor confidence and interest in the Terra Classic ecosystem. With a focus on decentralization and governance, the Terra Luna Classic community remains committed to driving growth and innovation within the ecosystem, setting the stage for a bright future ahead.
