A significant controversy has erupted within the Terra Luna Classic (LUNC) community following strong opposition from popular validator MrDiamondhandz against a new governance proposal. The dispute underscores growing concerns over decentralization and power dynamics within the ecosystem.
The Controversial Sub-DAO Proposal
The governance proposal in question seeks to establish a Terra Classic Sub-DAO, aimed at streamlining decision-making processes within the LUNC network. One of its key provisions includes the creation of a special emergency response team that would be able to act without waiting for full governance approval. Proponents argue that this would make governance more agile and efficient.
However, the proposal has faced intense criticism from segments of the community. Detractors, including MrDiamondhandz, claim that such a move would centralize power within a select group, contradicting the fundamental principles of decentralization. Critics fear that bypassing traditional governance mechanisms could lead to decisions that do not reflect the broader interests of the LUNC community.
Community Reactions and Voting Trends
The proposal has sparked intense debate, with opinions split. Current voting trends indicate:
- 39.41% approval
- 7.95% opposition
- 25.47% votes marked as “No with veto”
- 28.95% voter turnout, falling short of the 40% quorum required for passage
The lack of overwhelming support suggests deep divisions within the community.
Pushback from MrDiamondhandz
Leading the opposition, MrDiamondhandz has labeled the proposal as a thinly veiled attempt to establish centralized control under the guise of decentralization. In an X post, he warned that approving such measures could harm the network in the long run.
This is the second worst $LUNC prop I’ve seen in the last year behind the moronic $USTC meme coin prop.
— Mr. Diamondhandz1💎 (@MrDiamondhandz1) March 17, 2025
Same little click of people trying to make “committees” and “teams” that can go outside of governance for “emergency” things. Riiiiight so whatever they deem emergencies can… pic.twitter.com/skQSVXLur2
A leaked Telegram chat further highlighted the tensions, with some members expressing intentions to leave the ecosystem if the proposal fails. However, MrDiamondhandz remains steadfast in his belief that their departure would ultimately benefit LUNC’s decentralization efforts.
Despite the ongoing governance turmoil, LUNC’s price has remained relatively stable. As of this report, Terra Classic was trading at $0.00006361, marking a 1.11% increase over the last 24 hours. Investors remain watchful, as governance changes could significantly impact market sentiment.
In other developments, the community is also deliberating on reducing the 21-day withdrawal period for staked LUNC, which could further shape the network’s future.
Also Read: Terra Luna Classic Community Calls for Changes to LUNC Staking Model
As the proposal nears its decisive phase, the Terra Luna Classic community faces a crucial test of its commitment to decentralization and governance integrity.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
