Terra Classic (LUNC) is witnessing a surge in staking activity, with the ratio nearing its all-time high (ATH). This development comes alongside a key update revealed by a developer that could further incentivize staking in the long run.

Focus on Long-Term Staking Rewards

Terra Classic developer Till Z, known as Fragwuerdig, has finalized the “Oracle Split” logic. This update, proposed by the community, aims to divert a portion of the burn tax currently allocated to the community pool towards the Oracle Pool (OP). This shift in distribution prioritizes long-term staking rewards for LUNC holders.

Update Details and Timeline

The update, designated as v3.1.0, will require validator and community approval before implementation. A planned chain halt at block height 19060800, estimated for July 26th, will facilitate the update. Validators and infrastructure providers will need to update their software accordingly. A test run on the rebel-2 testnet is scheduled for July 11th.

Impact on Staking and Price

While immediate block rewards for LUNC users might see a slight dip, experts believe the update will benefit long-term staking attractiveness. The staking ratio has already jumped to 15.09%, nearing its ATH of 15.16%. The community anticipates this figure to climb further, potentially reaching 20%.

LUNC Futures Open Interest Up 20%

Adding to the positive sentiment, LUNC futures open interest has surged by 20% in the last 24 hours. This indicates increased investor activity and potential buying pressure. The uptick was particularly prominent on Bitget, a crypto exchange, where LUNC futures open interest witnessed a 45.96% rise.

LUNC Price Movement

LUNC’s price has grown modestly by 1% in the last day, currently trading at around $0.000071. Trading volume has also increased by 40%, suggesting heightened investor interest.

USTC Update

Conversely, USTC, the algorithmic stablecoin that played a central role in the Terra ecosystem crash, saw a 5% price decline. However, trading volume remained relatively stable, suggesting some investors might be buying the dip.

Looking Ahead

The upcoming update and rising staking ratio paint a promising picture for LUNC‘s long-term prospects. While the immediate impact on block rewards might be a slight concern, the focus on long-term staking incentives could attract more investors and potentially contribute to a price increase.

By Joadin Maina

Beyond the hype, I untangle the web3 revolution, guiding curious minds through the labyrinth of decentralized possibilities.