The Terra Classic (LUNC) community is facing a pivotal decision with two new proposals (12058 and 12059) regarding Know Your Customer (KYC) requirements. These proposals come as the burn narrative fades, and the focus shifts towards boosting the chain’s utility, interoperability, and security. However, the debate surrounding KYC remains fierce, highlighting the challenges the community faces in its revival efforts.
Certik KYC for Major Projects
Proposal 12058 seeks to establish Certik as a recognized KYC provider for developers seeking community funding for significant projects on the LUNC chain. This aligns with the framework outlined in Proposal 12033, which sparked controversy due to its mandatory KYC requirement.
While the proposal received over 65% initial votes in favor, significant opposition exists. Interstellar Lounge, a prominent community member, voted “No with veto,” citing concerns about KYC contradicting the decentralized ethos. Additionally, 34% of voters cast “No” votes, indicating mixed feelings.
Addressing Concerns for Small Contributions
Proposal 12059 aims to address concerns raised by developers working on smaller code fixes or validators volunteering their contributions. It proposes allowing these individuals to contribute code through a KYC-compliant party, with the party assuming liability for the transferred code.
This proposal received a more divided response, with 33% each voting for “Yes,” “No,” and “No with veto.” Notably, validators like JesusIsLord and Interstellar Lounge oppose this proposal as well.
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While the long-term goal is to revive LUNC and repeg USTC to $1, the community grapples with balancing decentralization with the need for responsible development. Some members suggest covering KYC costs for volunteer developers to encourage contributions.
Uncertain Future:
The outcome of these proposals will significantly impact the LUNC ecosystem’s future. If approved, they could attract larger projects and developers, potentially boosting the chain’s utility and value. However, enforcing KYC could alienate some community members and contradict the decentralized principles upon which the blockchain was built.
Market Outlook
The global cryptocurrency market cap dipped 4.98% in the last 24 hours, reaching $650.92 million as of February 12, 2024. Despite the overall market decline, Terra Classic (LUNC) maintained its price around $0.00011263, with a trading volume of $35.64 million in the past day. While LUNC experienced a slight decrease of 4.59%, it outperformed the broader market.
Currently ranked 111th by market cap, LUNC has a circulating supply of 5.78 trillion tokens and no set maximum supply. Its price fluctuated between $0.0001116 and $0.00011805 within the last 24 hours, suggesting some stability amidst the market correction.
The Terra Classic community faces a crucial juncture, and the coming days will reveal whether they can find a consensus that paves the way for sustainable growth while staying true to their decentralized ideals
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