- The balance of Terra Luna Classic’s community pool has reached a critical level due to the community’s approval of three spending proposals, leaving insufficient funds for further development and maintenance of the blockchain.
- This comes as LUNC’s price trades sideways, despite a brief surge following news of Binance’s substantial LUNC burn.
The financial reservoir of the Terra Luna Classic community has dipped alarmingly following the approval of three significant spending proposals. The community pool balance has shrunk from 2.37 billion LUNC to a mere 416 million LUNC, leaving the community in a financial quandary that restricts any further developmental pursuits or chain maintenance.
Three Major Proposals Gain Approval
The proposals given the green light by the Terra Luna Classic community included the formation of a Quant team for USTC repeg, a Joint L1 Task Force Q3 proposal, and the continued operation of Terra Rebels’ infrastructure and applications. The allocation of funds among these three initiatives amounted to 1.264 billion LUNC for the Joint L1 Task Force Q3, 222.222 million LUNC for the Quant USTC Repeg Team, and 484.367 million LUNC for Terra Rebels. The community pool balance now stands at a paltry 416.33 million LUNC and 4.49 million USTC.
The Joint L1 Task Force Q3 has proposed a multi-faceted development plan for Q3, including measures to decrease the circulating supply of LUNC and USTC, upgrades to the stable Columbus and Cosmos SDK versions, and other pivotal developments.
On the other hand, the Quant team will focus on modeling and simulation for USTC incremental repeg buybacks and staking swaps. In addition, they plan to assess the Market Module and work on auxiliary tools, with the assistance of the L1TF and professor Edward Kim.
Terra Rebels, a key community entity, requires the funds to maintain and operate the Rebel Station and other apps, along with the Terra Classic infrastructure and testnet.
The approval of these proposals has led to concerns within the community about the sanction of unnecessary community expenditure proposals. It has been suggested that only critical proposals should advance to the voting stage following thorough discussions.
The news of this development coincides with an erratic movement in LUNC’s price. Despite a brief 3% surge following Binance’s 2.65 billion LUNC burn announcement, the token failed to sustain the gain and fell back to the support level. Currently, LUNC is trading sideways at $0.000087, with a slight increase in trading volume over the last 24 hours.