- Terra Classic’s Proposal 12095 aimed to hike gas fees by 10x to combat spam attacks but faced significant pushback, notably from validator Allnodes, over concerns about increased restake operation costs.
- Ultimately, the proposal was rejected due to fears of its adverse impact on ecosystem growth, decentralized application support, and transaction execution costs, while the community remains focused on reviving LUNC’s price to $1 amidst ongoing efforts.
The Terra Classic network recently found itself at a crossroads with Proposal 12095, also known as the “10X Gas Fees” proposal, sparking a contentious debate within its community. Proposed on April 17, the initiative aimed to amplify Terra Classic’s gas fees tenfold, purportedly to curb spam attacks on the network. However, what ensued was a cascade of mixed reactions and ultimately, rejection.
Initially, Proposal 12095 garnered significant traction, with a considerable portion of the community voicing support for heightened on-chain fees. Notably, prominent validator Allnodes stood in opposition, citing concerns over increased restake operation costs. Their apprehensions echoed throughout the community, leading to a significant portion of validators voting against the proposal.
Ultimately, Proposal 12095 faced rejection, with a breakdown of votes revealing 44.83% in favor, 6.32% against, 35.31% in veto, and 13.54% abstaining. The aftermath of this decision was disseminated by community-driven accounts, shedding light on the rationale behind the rejection.
According to insights shared by the community-driven X account “Marketing LUNC,” the decision to reject the proposal stemmed from the belief that a tenfold increase in gas fees wasn’t the panacea for potential spam attacks. Concerns mounted over the proposal’s adverse effects on ecosystem growth, decentralized application (dApp) support, and transaction execution costs.
https://twitter.com/marketinglunc/status/1782316869740810644?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1782316869740810644%7Ctwgr%5E6b204022a021542323a08a53aaef95ea5e1708c8%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fthecryptobasic.com%2F2024%2F04%2F25%2Fterra-classic-community-rejects-10x-increase-in-gas-fees%2F
Currently, Terra Classic users transact with a minimum gas fee of 3.74 LUNC ($0.000385). Had Proposal 12095 passed, this fee would have skyrocketed to 37.4 LUNC ($0.00385), marking a significant escalation. Notably, all transaction fees on Terra Classic are divided equally, with half allocated to staking rewards and the other half to the community pool.
Meanwhile, amidst the aftermath of the gas fee proposal, the Terra Classic community remains steadfast in its pursuit of a revival campaign aimed at bolstering LUNC’s price to $1. Binance’s recent incineration of 4.17 billion LUNC on April 1 injected fresh optimism into this endeavor, adding to a total burn of 57.66 billion.
While Proposal 12095 may have sought to address network security concerns, its rejection underscores the significance of community consensus and the thoughtful consideration of proposed changes within decentralized ecosystems.
About the Author
