The Terra Luna Classic (LUNC) community has overwhelmingly approved a major upgrade proposal, v3.1.3, expected to boost staking rewards and propel the price of LUNC further. This news follows a 42% rally for LUNC in the past week, and analysts predict the positive momentum is likely to continue.
The upgrade focuses on revising the distribution of the 0.5% burn tax on LUNC transactions. Previously, 80% of the tax was burned, while the remaining 20% was split between the community pool and rewards. Under the new system, the 20% will be divided equally, with 10% each going to the community pool and a newly created Oracle Pool (OP). This shift aims to incentivize long-term staking and strengthen the network’s oracles, which provide crucial data feeds for smart contracts.
The proposal received near-unanimous backing from validators and delegators, highlighting strong community confidence in the upgrade’s potential. The successful passage comes after months of development led by Terra Classic developer Fragwuerdig. The upgrade is scheduled for July 29th, with the network halting at block height 19108180.
This development adds to the optimism surrounding LUNC. The token is still recovering from a recent selloff triggered by a hack on the BtcTurk exchange. However, the successful upgrade, coupled with the highly anticipated Tax2Gas proposal on the horizon, suggests further price appreciation for LUNC and its connected stablecoin, USTC.
Despite a slight dip in the last 24 hours, LUNC’s trading volume has surged by 40%, indicating continued investor interest. While LUNC and USTC currently trade below their YTD highs, the upcoming upgrade and potential future developments could propel them toward those levels and beyond.