- Terra Luna Classic (LUNC) faces controversy as the validator “JESUSisLORD 2” is accused of violating the dynamic commission rule by creating a secondary validator.
- Meanwhile, LUNC’s price has dropped 14% over the past week, trading below key support levels amid broader market volatility.
The Terra Luna Classic (LUNC) community is abuzz with concerns about alleged violations of network rules by validators. A recent proposal brought forward in the community forum accuses the validator “JESUSisLORD 2” (JIL2) of breaching the dynamic commission (DynComm) rule. This rule is designed to ensure fairness and prevent centralization by dynamically adjusting commission rates based on a validator’s voting power. The accusation alleges that JIL2 has created a secondary validator under the same entity to evade the DynComm rule, potentially setting a dangerous precedent.
The proposal suggests a formal warning for JIL2 instead of immediate punitive measures. This approach reflects ongoing debates within the community about the enforceability of the DynComm rule, as some argue that no explicit rule prohibits having multiple validators under one entity. The goal is to address the issue without causing undue disruption to the validator’s operations.
Price Drop Amid Broader Market Decline
Amid these governance issues, the Terra Luna Classic ecosystem has experienced a significant downturn. Both LUNC and USTC tokens have seen a 14% drop over the past week. The broader crypto market’s volatility has contributed to this decline, with LUNC’s price slipping below the crucial $0.000080 support level in the last 24 hours. Currently trading at $0.00007907, LUNC has failed to maintain its position, with trading volume decreasing by 32% in this timeframe.
The recent price action shows weakness, as LUNC trades below its 50-day moving average (DMA) and has fallen beneath a descending trendline. This technical analysis indicates ongoing bearish pressure, compounded by a sliding Relative Strength Index (RSI). The market’s uncertainty has exacerbated the selloff, with a significant drop in trading volume reflecting reduced market confidence.
Conversely, USTC has managed a slight recovery, rising by 2% to trade at $0.0161. Despite the recent 14% weekly drop, some traders are seizing the opportunity to buy the dip. However, USTC’s trading volume has also decreased sharply by 47% over the past day, highlighting the overall market reluctance.
As Terra Luna Classic navigates these turbulent waters, the community’s focus on addressing validator rule violations and the impact of broader market trends will be crucial in shaping the future trajectory of LUNC and USTC prices.
