Holders of Terra Luna Classic (LUNC) have overwhelmingly approved a proposal submitted by developer Genuine Labs. The proposal, which garnered a near-unanimous 99.95% “yes” vote, paves the way for significant upgrades to the Terra Classic network.
This news comes amidst a surge in LUNC’s burn rate, a key metric for holders hoping to see the token’s price rise. With a daily average burn exceeding 200 million tokens this month, over 1.3 billion LUNC have been effectively removed from circulation this week alone. This supply decrease has coincided with a positive price trend, with LUNC gaining over 12% in the last week.
Genuine Labs Proposal, A Boon for LUNC?
The core focus of the Genuine Labs proposal lies in implementing the Cosmos SDK 0.47.10 upgrade. This upgrade promises a multi-pronged benefit for the Terra Classic network:
- Enhanced Security: The upgrade aims to bolster the network’s security posture, potentially mitigating future exploits.
- Improved Interoperability: Increased interoperability with other blockchains could unlock new use cases and integrations for LUNC.
- Developer-Friendly Features: The upgrade boasts improvements designed to attract developers, potentially fostering a more vibrant ecosystem around LUNC.
- Overall Performance Boost: The upgrade is expected to enhance the overall performance of the Terra Classic network.
Genuine Labs has set an ambitious target of completing the developments within eight weeks, with a budget of $30,000. The swift timeline reflects the community’s eagerness to see the upgrade implemented and potentially reap the associated benefits.
LUNC Burn Rate on the Rise
The significant increase in LUNC’s burn rate is another factor driving optimism within the Terra Luna Classic community. Several mechanisms are currently contributing to the burn, including:
- Community Burn Initiatives: Various community-led projects and proposals are actively burning LUNC tokens.
- On-chain Burning Mechanisms: Certain transactions on the Terra Classic network inherently involve burning a portion of LUNC.
The rising burn rate signifies a decrease in LUNC’s overall supply. Basic economic principles suggest that a decrease in supply, coupled with consistent demand, can lead to a rise in price.
Also Read: Can Terra Classic Take Flight Again? LUNC and USTC Eye Takeoff with Bold New Plan
Can LUNC Break Out?
While the recent developments are positive, it’s important to acknowledge the speculative nature of cryptocurrency markets. The future price trajectory of LUNC remains uncertain and will depend on various factors, including broader market trends, adoption of the upgraded network, and the effectiveness of ongoing burning initiatives.
However, the overwhelming community support for the Genuine Labs proposal and the rising burn rate suggest a renewed sense of optimism within the Terra Luna Classic community. With development work on the upgrade underway, the coming weeks could be pivotal for LUNC’s future.
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