The Terra Luna Classic community has firmly rejected a highly contentious proposal to increase the validator set to 130 on the blockchain. This decision comes in the wake of Terraform Labs and Do Kwon reaching a $4.5 billion settlement with the U.S. Securities and Exchange Commission (SEC). The rejected proposal was perceived by some as an initial step towards merging with the Terra (LUNA) community, aiming to introduce Luna v2 validators to Terra Classic and enhance the network’s decentralization.
Terra Luna Classic Rejects Proposal
The Terra Luna Classic community is currently hesitant to raise the validator limit from 100 to 130, despite the potential benefits of welcoming back validators from Terra Luna v2 post-Terraform Labs and SEC settlement. Proposal 12116, titled “Increase Validator Active Set to 130,” failed to garner sufficient support in the governance voting.
The proposal secured only 30.59% “yes” votes, while a significant 46.17% “no” vote and 22.59% “abstain” vote ultimately led to its rejection. Among the 46 validators who participated in the vote, only 10—including prominent ones like Allnodes, Luna Station 88, LuncGoblins, and Autism Staking—opposed the proposal.
All nodes expressed concerns about the chain’s readiness, stating, “The amount of LUNC required to get into the active set is not burdensome.” The proposer of the initiative argued that expanding the validator set to 130 would bolster the Terra Classic network’s decentralization and benefit the LUNC community.
LUNC and USTC Prices Defy Market Sentiment
Despite the rejection of the proposal, the Terra Classic ecosystem tokens exhibited upward momentum. This surge occurred amid a reshuffling of LUNC positions following the delisting of LUNC by the BtcTurk crypto exchange after a hack. Over the past few days, LUNC futures open interest has shown a steady increase.
In the past 24 hours, LUNC‘s price has risen by more than 1%, currently trading at $0.00008164, with a 24-hour low and high of $0.00008031 and $0.00008367, respectively. However, trading volume has plummeted by 60% over the same period, indicating waning interest from traders.
Meanwhile, USTC’s price has remained relatively stable at around $0.0180, with the current price at $0.01775. The 24-hour trading volume for USTC has also seen a significant drop of 55%. Additionally, USTC futures open interest has declined by 3% in the past few hours, suggesting a loss of momentum.
Conclusion
The Terra Luna Classic community’s decision to reject the proposal to increase the validator set highlights the ongoing caution and deliberation within the community. While the potential for greater decentralization exists, the current sentiment suggests that more readiness and consensus are needed before such significant changes are implemented. As the market responds to these developments, the future trajectory of LUNC and USTC remains a point of close watch for investors and stakeholders.
