- The Terra Luna Classic community rejected a proposal to increase the validator set from 100 to 130, citing readiness concerns.
- Despite this setback, LUNC and USTC prices saw a significant increase, defying market expectations.
Community Rejects Proposal to Increase Validator Set
In a significant move, the Terra Luna Classic community has rejected a proposal that sought to increase the validator set to 130. This decision comes at a time when Terraform Labs and Do Kwon have agreed to a substantial $4.5 billion settlement with the U.S. SEC, which some saw as a step towards reintegrating Luna v2 validators into Terra Classic.
Terra Luna Classic Rejects Proposal
The highly debated proposal, numbered 12116, aimed at expanding the validator limit from 100 to 130. This was perceived as an initial effort to merge with the Terra (LUNA) community by welcoming back Luna v2 validators, thus bolstering the network’s decentralization. However, the proposal failed to pass the governance voting threshold, securing only 30.59% “Yes” votes. In contrast, 46.17% voted “No,” and 22.59% abstained, leading to its rejection.
Notably, some of the top validators, including Allnodes and Luna Station 88, voted against the proposal. Allnodes cited that the chain is not yet ready for such an expansion, stating, “The amount of LUNC required to get into the active set is not burdensome.” In total, 46 validators participated in the vote, with only 10 supporting the proposal. Proponents had argued that expanding the validator set would enhance the network’s decentralization and benefit the LUNC community, but this viewpoint did not garner enough support.
LUNC and USTC Prices Jump Defying Market Sentiment
Despite the setback in governance, Terra Classic ecosystem tokens have shown surprising resilience. Following the rejection of the proposal and a rearrangement of LUNC positions after the BtcTurk crypto exchange delisted LUNC post-hack, both LUNC and USTC prices have surged.
LUNC’s price increased by over 10% within 24 hours, currently trading at $0.00008246. This price jump came alongside a significant boost in trading volume, which rose by 50% in the same period. Similarly, USTC saw its price climb by more than 5%, now trading at $0.0181, with a 136% increase in 24-hour trading volume. Futures open interest for both tokens also saw a considerable rise, with LUNC futures up 24% and USTC futures up 21%, indicating potential bullish momentum.
While the rejection of the validator expansion proposal represents a notable roadblock in Terra Luna Classic’s merger efforts, the recent price actions suggest that the ecosystem remains dynamic and potentially poised for further developments. The community’s cautious approach towards validator expansion underscores the complexity of achieving true decentralization while maintaining network stability.
