- The Terra Luna Classic community has officially approved a proposal for implementing dynamic minimum commissions for validators based on their voting power.
- The proposal, backed by an 84% majority vote, aims to enhance network security, flexibility, and prevent centralization issues within the Terra Luna Classic blockchain ecosystem.
A Paradigm Shift in Validator Commissions
The Terra Luna Classic community has endorsed a groundbreaking proposition—Proposal 11738—to institute dynamic minimum commissions for network validators, calculated according to their voting power. The motion, submitted by community notables StrathCole and HappyCattyCrypto, garnered an overwhelming 84% of favorable votes, well surpassing the minimum threshold for approval. Notably, the proposal also amassed 6% “Abstain” and 10% “No” votes.
Among the 44 validators that partook in this governance milestone, a resounding 36, including Allnodes, HappyCattyCrypto, Interstake One, T.MOM, and TerraCVita, cast their ballots in favor. A minority of four, which included JESUSisLORD and SolidVote, opposed the measure.
The newly ratified proposal aims to tackle the issue of centralized voting power within the Terra Luna Classic network. In the quest for true decentralization—a cornerstone principle of blockchain—the new dynamic minimum commission structure will make the network more resistant to single-point failures and vulnerabilities. Validators with lower voting power will now have the latitude to levy more competitive commissions, thereby injecting additional flexibility and enhanced security into the ecosystem.
Prior to this, the community had green-lighted a flat 5% minimum commission designed to incentivize validator participation and thus foster a more decentralized governance framework. Ironically, this resulted in an unintended consequence where top validators amassed even more voting power, thereby introducing greater centralization risk.
Token Performance Amidst Governance Shifts
As the Terra Luna Classic community focuses on its governance structure, its native tokens—LUNC and USTC—have been facing market pressures. Last month, LUNC depreciated by 22% and USTC fell by 16%. Both tokens have continued their struggle with LUNC currently trading at $0.000060 and USTC at $0.011. Additionally, the trading volume for USTC has plummeted by 45% in the past 24 hours, underscoring the market’s ambivalence amidst these significant governance changes.