Terra Classic [LUNC]: Will this proposal be the boost the ecosystem needs?
- Over 41% of the voters supported the proposal, whereas 9% were against it at press time.
- LUNC and LUNA were slow to respond to the news.
Terra Classic’s [LUNC] much anticipated proposal 11487’s voting period is coming to an end on 30 April. The result of the voting can turn out to be a game changer for the Terra ecosystem and result in a revival.
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Read Terra Classic’s [LUNC] Price Prediction 2023-24
A Terra ecosystem revival on its way?
The proposal 11487 was aimed at repegging Terra’s stablecoin, TerraClassicUSD [USTC], which crashed last year. The crash caused the entire crypto market to plummet then and its repurcussions are still haunting the crypto space.
The proposal talks about the introduction of a new mechanism to re-peg USTC.
The new divergence mechanism will levy fees on trades that deviate from the targeted peg in order to stabilize the value of USTC. The fee can range anywhere from 0% at the peg to 100% at a 50% deviation from the peg.
If the community and the majority of CEXs approve this proposal, the L1 team will decide on an actual schedule and will roll out the mechanism in four phases.
At press time, more than 41% of the voters supported the proposal, whereas 9% were against it.
LUNC is yet to respond
Terra Classic [LUNC] has not reacted to the development yet, as its weekly chart was red. CoinMarketCap’s data revealed that LUNC was down by more than 4% in the last seven days. At press time, it was trading at $0.0001092, with a market capitalization of over $644 million.
Negative sentiments around LUNC were dominant in the market, as evident from its weighted sentiment.
LUNC’s development activity also took a dip after spiking mid-week, which was a red signal. Nonetheless, LUNC managed to remain a topic of discussion in the crypto space as its social volume was up.
LUNA followed the same trend
Terra’s [LUNA] on-chain metrics also looked similar to those of LUNC. LUNA’s weighted sentiments remained on the negative side, suggesting low confidence among the crypto community in the token.
Its social volume remained high, but considering the weighted sentiment, it seemed that most of the mentions were bearish.
How much are 1,10,100 LUNAs worth today
LUNA’s price registered marginal movement in the last week, as it declined by over 1% in the past seven days. At the time of writing, it was trading at $1.25 with a market capitalization of more than $326 million.
It will be interesting to see the effect the proposal will have on the entire Terra ecosystem.