The Terra Luna Classic community recently approved a crucial proposal aimed at improving governance and stability. This decision has sparked optimism about a potential rally for LUNC, particularly as Binance continues its token burn initiative.
Terra Luna Classic Approves Governance and Stability Proposal
The Terra Luna Classic blockchain has made significant strides with the approval of a proposal led by BLV Labs. This proposal focuses on enhancing the blockchain’s governance module, addressing key issues such as the volatility of the deposit required to submit proposals.
Currently, creating a proposal on the Terra Luna Classic blockchain requires a deposit of 5 million LUNC. The challenge arises when the price of LUNC fluctuates, making the deposit too high or too low. This instability has caused concerns for the network’s governance.
To solve this, BLV Labs proposes using the Oracle module to automatically adjust the deposit based on LUNC’s current price. This would ensure a stable deposit value of $500, preventing bad actors from submitting spam proposals when LUNC’s price drops significantly.
Community Support and Market Impact
The proposal received overwhelming support, with more than 85% of the votes cast in favor. This shows strong community backing for the changes and has sparked discussions about its potential positive effect on LUNC’s price. Many believe this proposal will help create a more secure and efficient ecosystem, further enhancing confidence in the Terra Luna Classic project.
LUNC Price Outlook: Can It Rally?
At the time of writing, LUNC was up by 1.03%, trading at $0.00008641, with trading volume holding steady at $15.02 million. Despite this price increase, Futures Open Interest dropped by 3.5%, indicating some market caution.
However, the proposal’s approval, coupled with Binance’s ongoing LUNC burn mechanism, has boosted market sentiment. This combination of factors could contribute to a potential price rally for LUNC in the near future.
Additionally, USTC price saw a 3% increase to $0.01828, and LUNA price was up nearly 1% to $0.3884, further reflecting positive market sentiment in the Terra ecosystem.
