- Terra Luna Classic rallied 13.35%, bouncing back to mid-April levels.
- A governance proposal to set limits on validator nodes has been rejected.
- Despite the slowdown, LUNC burning reduced the remaining supply to 5.79T.
Last weekend, Terra Luna Classic (LUNC) rejected a major governance proposal to prevent chain validators from running multiple validators on the network. Proposal #12101 seeks to impose a single validator rule, which has been called “unfeasible” and “meaningless” by certain validators such as SolidVote.
Most members agree that the proposal to limit validator nodes has good intentions, but the strategy would be difficult to realize because Terra chain validators could simply ignore the implemented rules. Breaking down the voting results, nearly 38% of Terra Classic community members voted ‘yes’, 37% voted ‘no’ and another 21% vetoed the proposal.
Despite the Terra Luna Classic community being divided into two camps due to the LUNC chain validator policy, the embattled layer 1 altcoin recorded an 8.6% gain in trading, trading at $0.0001162 as of press time. The validator limit proposal addresses the centralization issues caused by unlimited validator nodes, but it is likely that the proposal will be resubmitted soon.
Black Swan Survivor LUNC surges 13%
Concurrently with Terra’s malfunctioning stablecoin Terra Classic USD (USTC) surging 28% to $0.0233, LUNC’s price trajectory rose significantly on May 2, hitting the $0.0001 confluence support line after falling below this critical price range on April 30. I passed it.
Thanks to Binance’s contribution to the LUNC burn, the circulating LUNC supply has now been significantly reduced, with 5,799,402,152,117 LUNC tokens in circulation. Binance’s most recent monthly burn event burned 1.5 billion LUNC tokens, but the effort was much smaller than the cumulative burn implemented in April.
A 140% rise in Terra Classic’s 24-hour trading volume contributed to the surge, with LUNC adding $100 million to its global market capitalization since May 2. This milestone led to an overbought condition on LUNC’s trading chart, with this indicator reading at 75.12. . In terms of volatility, the tight Bollinger Bands are gradually widening, which means that LUNC price volatility is likely to expand in the future.
On the flip side
- LUNC caught up with the early spring memecoin season after failing to regain its $1 billion market capitalization since March 15, 2024.
- TerraForm Labs, the original issuer of the Terra Luna coin, went bankrupt earlier this year after a UST conflict lawsuit was filed in the SEC’s favor.
Why This Matters
Governance proposals are an efficient way to improve a blockchain as the largest holders and contributors to the network are given voting rights.
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