The Terra Luna Classic (LUNC) community is taking a crucial step towards reviving its ecosystem with a proposal to restore interoperability with the Osmosis protocol. This move, if successful, could breathe life back into LUNC and its algorithmic stablecoin, USTC (TerraClassicUSD).
Restoring the Bridge: IBC Revival Proposal
Proposal 12104, championed by former core developer Fragwuerdig, is currently being voted on by the LUNC community. The proposal aims to re-enable Inter-Blockchain Communication (IBC) between LUNC and Osmosis. IBC facilitates seamless transfers of assets between different blockchains, a crucial feature for any cryptocurrency seeking wider adoption.
Currently, transfers between LUNC and Osmosis are suspended. Restoring IBC functionality could significantly boost liquidity for both LUNC and USTC. By allowing users to easily move these assets between chains, the proposal could unlock new opportunities for trading and DeFi (Decentralized Finance) applications.
A key detail within the proposal involves upgrading the Osmosis IBC client. Terra Classic member and validator Vegas identified this as necessary for smooth operation of the IBC relay, enabling efficient interchain transfers. The proposal recommends upgrading from version 07-tendermint-12 to 07-tendermint-250.
Community Overwhelmingly Backs Revival
The proposal has garnered significant support, with over 96% of votes cast in favor. This overwhelming endorsement reflects the community’s strong belief in the potential benefits of restored IBC functionality. The deadline for voting is May 25th, with only a small percentage of “No with veto” votes registered.
LUNC and USTC: Await Revival?
Despite the positive development surrounding the IBC revival proposal, the price action for both LUNC and USTC remains subdued. LUNC currently trades sideways after a brief uptick earlier in the week, hovering around $0.0001. Similarly, USTC, though experiencing a 30% rally in the past month, displays stagnant trading volume.
Also Read: Over 1.7 Billion LUNC Burned: Binance Retains Top Burner Position for Terra Classic
The IBC revival vote offers a glimmer of hope for the LUNC ecosystem. If successful, it could revitalize liquidity and unlock new use cases for LUNC and USTC. However, the coming days will be crucial in determining the proposal’s fate and its potential impact on the LUNC ecosystem’s future. Investors and community members alike will be closely watching the voting outcome and any subsequent developments in LUNC’s price action.
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