Holders of Terra Luna Classic (LUNC) rejoice! The developers are putting the finishing touches on a tax distribution upgrade, aiming to improve the way rewards are distributed within the ecosystem. This upgrade has been highly anticipated, and with its implementation just around the corner, here’s a breakdown of what you need to know.
The Upgrade Explained: Shifting Rewards for Long-Term Sustainability
The core change revolves around the concept of “Oracle Pool rewards.” Previously, a portion of the community pool rewards went towards tax burns. This upgrade diverts those rewards to the Oracle Pool (OP) instead. This might sound counterintuitive at first, but the logic lies in long-term sustainability.
A healthy Oracle Pool is crucial for the Terra Classic ecosystem. It incentivizes external data providers to supply reliable information to the network, ensuring its smooth operation. Diverting rewards to the OP ensures a more consistent flow of funds to these data providers, ultimately strengthening the network’s infrastructure.
This shift also subtly changes the reward structure. Instead of prioritizing short-term rewards through tax burns, the focus moves towards long-term sustainability by bolstering the network’s core functionality.
Technical Tweaks and Community Approval
The upgrade isn’t just about changing reward distribution. The development team, including prominent figures like Fragwuerdig (Till Z) and StrathCole, have also addressed technical aspects. Fixing parameter keys tables, adjusting the logic for oracle splits, and implementing a newer version of the WasmVm (wasmvm v1.5.2) to prevent memory leaks were key areas of focus.
As with any significant change, community approval is paramount. Proposals outlining the upgrade details (12098 and 12114) were passed by the Terra Classic community, paving the way for implementation. Additionally, a final proposal will be submitted for validator and general community approval before the upgrade goes live.
Upgrade Timeline and Potential Impact
The exact date for the upgrade hasn’t been finalized, but an estimated timeframe is in sight. The chain halt for the upgrade is anticipated around July 29th, 2024, at 1:00 PM UTC (block height 19108180). This slight delay is attributed to the finalization of changes and ensuring a smooth transition.
The upgrade itself is expected to be beneficial for LUNC in the long run. A stronger Oracle Pool translates to a more robust network, potentially attracting more users and developers. However, it’s important to remember that the short-term impact on the price might be limited. While some speculate a potential price surge due to increased network activity, the true impact will likely unfold over time.
Related: LUNC News: How the Terra Classic Community Decision to Burn LUNC Impacts the Token’s Price
What LUNC Holders Need to Do
Fortunately, for most LUNC holders, no immediate action is required. However, if you’re a validator or run infrastructure with MantleMint accelerated LCDs, you’ll need to update to the new versions after the chain halt. The developers will provide detailed instructions closer to the upgrade date.
Looking Forward: Transparency and Community Engagement
The LUNC tax distribution upgrade highlights the ongoing development within the Terra Classic ecosystem. The focus on long-term sustainability and the collaborative approach with community involvement are positive signs. As the upgrade unfolds, staying informed through official channels like the Terra Classic forum and social media will be crucial. This will ensure a smooth transition and keep you updated on any further developments.