- The Terra Luna Classic community is casting votes on two pivotal governance proposals to increase gas fees by 2x and decrease the staking undelegation period to 14 days.
- The votes have secured initial backing from community members, as they align with the ongoing efforts to restore the LUNC to $1 and re-peg USTC.
The Terra Luna Classic community has embraced the winds of change, currently voting on two seminal governance proposals. The objective is to hike the gas fees twofold and curtail the staking undelegation period to 14 days. These measures, receiving initial endorsement from community members, are geared towards reviving LUNC to $1 and re-pegging USTC.
Decoding The Governance Proposals
Esteemed validator and community figure, JESUSisLORD, revealed on July 14 that two of his Terra Luna Classic (LUNC) proposals are currently open for voting on the Station.
Proposal 11639, titled “Reduce Staking Undelegation Period to 14 Days”, proposes to truncate the LUNC staking undelegation period from 21 days to 14 days. This adjustment is aimed at providing users with greater command over their staked LUNC, stimulating more individuals to stake, thereby reducing the LUNC circulating supply.
In JESUSisLORD’s perspective, a 14-day undelegation period strikes the perfect balance between ensuring network stability and warding off volatility. It sidesteps the complications and penalties associated with speedy undelegation proposals on Terra Luna Classic. This approach aligns with the Cosmos project Osmosis (OSMO), which also employs a 14-day undelegation period.
I have two #LUNC governance proposals up for vote now: 💯👍🏆
1. Proposal #11639 – Reduce Staking Undelegation to 14 Days ✅
This proposal is to reduce the LUNC staking undelegation period from 21 days (3 weeks) to 14 days (2 weeks).
This gives you more flexibility with… pic.twitter.com/XVEVA75vsO
— JESUSisLORD (@ForTheCross_CH) July 14, 2023
Meanwhile, Proposal 11370, labeled “Raise Gas Fees by 2x”, seeks to magnify all present on-chain gas fees by 2x. This action is anticipated to enhance the community pool funding and staking rewards, as “gas fees are split 50/50 between the two”. Given that the last alteration of gas fees occurred six months ago, this could be a pivotal move for the Terra Luna Classic ecosystem.
Arguing that the current on-chain gas fees are notably cheap, JESUSisLORD highlights that it costs approximately 8 LUNC to send ($0.00067) and 67 LUNC to withdraw staking rewards ($0.0056). The proposed revision would set gas fees between 0.13 cents to 1.1 cents per transaction, according to current LUNC prices, and could potentially stall the continual decrease in APY.
Despite initial support in the voting stage, some members voiced opposition during the Commonwealth forum discussions, questioning the need for these revisions.
Amidst the broader recovery in the crypto market following Ripple’s triumph against the US SEC, the Terra Luna Classic price has seen an upward swing. The LUNC price, which jumped over 7% in the last 24 hours to currently trade at $0.000089, needs to sustain above the $0.00009 support level to invite further upside potential. This leap is accompanied by a 170% surge in the trading volume over the past 24 hours.
