- Terra Luna Classic (LUNC) dropped over 10% after its community rejected a proposal to launch a new stablecoin.
- Exchange delistings and weak trading volumes now threaten its chances of recovery.
LUNC Community Rejects Key Stablecoin Plan
Terra Luna Classic (LUNC) suffered another major blow after its community voted down proposal #12192, which aimed to introduce USTD, a decentralized and automated yield-bearing stablecoin on the blockchain. The decision highlights ongoing divisions within the ecosystem as members struggle to revive the original USTC stablecoin, which remains far from its $1 peg.
Proposal for #USTD got rejected by the Validators & well let's respect this decision & let's find more solutions for #LUNC chain.
Some #LUNCcommunity wanted USTD to be in L2 side so I hope @RedlineDrifter can focus on this so this idea should not be failed.$LUNC will shine. pic.twitter.com/uPucAXCWX8
— Saqlain Ali ⨀ (@SaqlainAli888) September 25, 2025
Validators like Garuda Universe abstained from the vote, but the overwhelming majority rejected the proposal. The result was immediate: LUNC’s price sank 10.3%, hitting a critical support level of $0.00005377. This decline erased hopes of regaining its earlier $0.00007000 level, achieved briefly in June.
Exchange Delistings Compound the Crisis
The market pressure on LUNC has only deepened with exchange actions. Three weeks ago, OKX removed LUNC/USDT, LUNC/USD, and USTC/USDT trading pairs from its spot market, followed by delisting perpetual contracts a week later. This dealt a severe blow to trading activity, which has now dropped to around $11 million daily, far below the $100 million average seen earlier in the year.
Such low volumes limit the token’s ability to recover, especially as it struggles to climb above the mid-tier Bollinger Band, a key technical indicator. With fewer exchanges supporting the asset, investor confidence appears increasingly fragile.
Community Holds on Despite Headwinds
Despite the price collapse, some within the Luna Classic community remain optimistic. A revamped official website now showcases decentralized applications and Web3 games built on the chain, signaling ongoing development. Additionally, over 15% of LUNC tokens remain staked, showing that many holders continue to treat it as a long-term bet.
However, without significant new use cases or broader exchange support, LUNC faces an uphill battle. Analysts suggest that unless the community finds fresh utility or governance direction, the project may struggle to re-enter the top 100 cryptocurrencies by market capitalization.
Outlook: Can Luna Classic Survive?
The rejection of proposal #12192 may mark a turning point for Luna Classic. With trading volumes shrinking and price support weakening, the project’s future hinges on whether developers and the community can agree on a sustainable strategy. While loyal supporters continue to stake and build, LUNC remains trapped between fading investor trust and the hope of revival.
ALSO READ:How to Stake Terra Luna Classic (LUNC) Guide for Passive Rewards
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