Here’s what Terra Classic’s proposal holds for LUNC, but do bears have other plans
- LUNC’s proposal 11487 was passed with over 49% of voters’ support.
- LUNC’s price was not affected positively, and indicators were bearish.
Terra Classic’s [LUNC] proposal 11487 got passed on 30 April, which could change the Terra ecosystem’s fate for good. The voting ended on 30 April with over 49% in support. This proposal can help the Terra ecosystem reclaim its past glory, which got shattered last year due to the Terra Classic USD [USTC] crash.
Realistic or not, here’s LUNC’s market cap in BTC’s terms
The implication of Proposal 11487
For starters, the goal of the proposal was to determine whether the LUNC community wanted to move on with the USTC Repeg proposal and the strategy laid out in the associated Agora discussion. The new divergence mechanism will levy fees on trades that deviate from the targeted peg in order to stabilize the value of USTC.
As per the proposal, the fee can range from 0% at the peg to 100% at a 50% deviation from the peg. Now that the proposal has passed, the L1 team will decide on an actual schedule and roll out the mechanism in four phases.
LUNC and USTC’s reactions were short lived
While the proposal was in the voting process, the crypto community had high hopes for the Terra ecosystem. The positive sentiment was also reflected in LUNC’s and USTC’s charts, which were painted green on 28 April. However, the growth was short-lived, as the situation again turned sour for both cryptos over the following days.
— Classy ? (@ClassyCrypto_) April 29, 2023
Current state of Terra Classic
According to CoinMarketCap, LUNC’s price registered a decline of over 3% in the last 24 hours. At the time of writing, it was trading at $0.0001083 with a market capitalization of $638 million, making it the 70th largest crypto by market cap.
The good news for LUNC was that its weighted sentiments improved in the last few days, reflecting the community’s trust in the token. However, its trading volume declined last week, which indicated less interest from investors.
Additionally, LunarCrush’s data reveals that Terra Classic’s altrank increased in the last 24 hours, which is a typical bearish signal.
Things also did not look good for LUNC in the near term, as most of the market indicators were bearish. Terra Classic’s Money Flow Index (MFI) went down sharply in the last few days.
How much are 1,10,100 LUNCs worth today?
The Relative Strength Index (RSI) was also resting below the neutral mark. The bears were ahead of the bulls, which was evident from the Exponential Moving Average (EMA) Ribbon’s findings. Therefore, investors can expect a further drop in LUNC’s price.
However, considering the importance of the newly passed proposal, the entire impact of the episode might be different and be an interesting one to watch.