The Terra Luna Classic (LUNC) blockchain, once on the brink of collapse after the infamous crash of Terra’s ecosystem in May 2022, is now gearing up for a major governance overhaul. This initiative seeks to restore trust and streamline the decision-making process as the community takes further control of the chain’s future.
Developers Undergo KYC For Accountability
In a move aimed at improving transparency, developers working on Terra Luna Classic are now required to undergo Know Your Customer (KYC) verification before contributing to the chain. BLV Labs, a team of three developers, has taken the lead in this initiative by acquiring KYC certification from SolidProof, an on-chain verification service. This certification, made publicly accessible, is intended to establish accountability and ensure that those working on the chain are credible.
One of the developers, Tran Minh Tu, completed his KYC procedure just days before a critical proposal was published to revise LUNC’s governance framework. The introduction of KYC marks a significant step toward enhancing the trust between developers and the community, particularly following past instances of unverified projects that ended in chaos.
Key Governance Changes Ahead
A key issue identified by BLV Labs in their recent proposal is the fluctuating minimum deposit required to submit governance proposals. With Terra Luna Classic’s price constantly shifting due to volatile market sentiment, there’s a need to stabilize the deposit threshold.
To address this, the proposal suggests leveraging the Oracle module to adjust the minimum deposit dynamically, ensuring that it remains fixed at $500 in value, regardless of LUNC’s price fluctuations. This adjustment aims to protect the chain from being overwhelmed by spam proposals if the price of LUNC were to drop significantly.
In addition, the proposal introduces changes to the governance voting process. BLV Labs is advocating for an expedited voting mechanism that could speed up the implementation of crucial security patches and software updates. This faster process would be particularly beneficial in addressing time-sensitive issues on the Layer-1 blockchain, which is prone to spam proposals.
The proposed changes also include a mechanism to cancel proposals during the voting phase, adding another layer of flexibility and efficiency to Terra Luna Classic’s governance system.
Current Proposal Status and Community Response
As of now, the text proposal is live for voting on Galaxy Station, with a 65.02% approval rate. The community has six more days to cast their votes, and if the proposal gains widespread support, a community spending proposal for $5,000 will follow to fund the project. BLV Labs estimates that it will take four weeks to complete the governance overhaul.
Following the release of this proposal, LUNC saw a modest price increase of 0.2%, trading at $0.00008137, according to CoinGecko. Although the price movement is minimal, it reflects growing optimism within the Terra Luna Classic community.
Stabilizing the deposit threshold and expediting the voting process are critical steps toward protecting the Terra Luna Classic blockchain from bad actors and ensuring that key upgrades are implemented swiftly. As the community continues to rebuild trust in the system, these governance reforms could be pivotal in LUNC’s long-term recovery.
In the wake of Terra’s previous downfall, this governance overhaul could mark a turning point for the project, setting a precedent for transparency, accountability, and security.
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.
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