The prices of LUNA and LUNC saw significant gains today, rising by 14% and 9%, respectively. Investors are speculating on the reasons behind this surge. One of the key drivers appears to be a Terra Classic community proposal to vote on a major upgrade, which has boosted confidence in the market.
Terra Classic Community Votes on Key Network Upgrade
The Terra Classic community is currently voting on an important upgrade proposal, v3.1.5, which aims to improve the network’s security and efficiency. This update focuses on critical security patches, enhancing Terra’s core components wasmd and wasmvm. The upgrade is scheduled to take place at block height 19,850,000 on September 18, pending community approval.
The proposal also includes a gas simulation patch carried over from the previous version, v3.1.4. Validators and infrastructure providers will need to implement the changes immediately after the scheduled chain halt. Early voting indicates strong support, with the community united in pushing the network forward.
The proposal also highlights robust testing protocols, such as a rehearsal upgrade on the rebel-2 testnet, demonstrating a cautious approach to ensuring a smooth transition.
LUNA and LUNC Price Rallies Boosted by Token Burn Expectations
LUNC surged by 9.12%, reaching $0.00008612, with a 223% spike in trading volume to $30.07 million. Despite this rally, challenges remain for LUNC to hit $0.01.
Meanwhile, LUNA jumped 14.53% to $0.3882, with its trading volume skyrocketing by 391% to $75.39 million. This rally coincides with increasing anticipation around potential massive token burns in the Terra ecosystem. The community expects significant reductions in the supply of USTC and LUNC, with estimates suggesting over 1 billion USTC and 275 billion LUNC could be burned as part of a court order linked to Terraform Labs’ Chapter 11 bankruptcy.
These token burns are viewed as a crucial step toward restoring value and stability to the Terra Classic ecosystem, potentially driving further price increases as supply diminishes.
Investor Sentiment Remains Bullish as Proposal Vote Continues
As the Terra Classic upgrade proposal vote moves forward, investor sentiment remains strong. With six days left before the vote concludes, early results show overwhelming support for the upgrade. This reflects a community eager to push the network into its next phase of development, especially after facing market volatility and regulatory challenges.
