The Terra Luna Classic community has recently approved a major proposal, sparking market speculations. According to the update, the approved proposal focuses on tackling issues related to governance and stability, fueling discussions over its potential impact on LUNC price.
Meanwhile, the recent LUNC burn by Binance has also bolstered the market sentiment, which could also help in the token’s rally ahead.
Terra Luna Classic Approves Crucial Proposal
The recently approved proposal, led by BLV Labs, aims to enhance the governance (GoV) module. The latest proposal update shows that the team, which consists of three experienced members from the Cosmos ecosystem, focuses on addressing challenges faced while submitting proposals in the Terra Luna Classic blockchain.
The main challenge is the deposit for creating proposals on the blockchain, which is currently set at 5 million LUNC, does not account for the price volatility. In other words, when the LUNC price fluctuates, the deposit amount may either become too low or too high, which causes problems in maintaining the proposals’ value.
However, to avoid this, BLV Labs proposes to use the Oracle module. It will help in automatically adjusting the required deposit amount based on the current LUNC price while ensuring a stable value of $500.
In addition, it is also expected to stop bad actors from spamming the network with proposals when the token’s price slumps drastically. In other words, it will aid in maintaining the integrity of the network’s governance process by stabilizing the depositing value.
Meanwhile, the approval of this proposal, with more than 85% votes cast in favor, reflects the community’s interest in it. In addition, many have speculated that it will help boost LUNC price while creating a more secure and efficient ecosystem.
LUNC Price To Rally?
The LUNC price was up 1.03% to $0.00008641 during writing, with its trading volume staying near the flatline at $15.02 million. However, despite a surge in the price, the crypto’s Futures Open Interest was down over 3.5%.
However, this latest development appears to have boosted the Terra Luna Classic community’s optimism, which may help in LUNC rally. In addition, Binance’s ongoing LUNC burn mechanism also seems to have bolstered market sentiment.
Meanwhile, USTC price rose 3% as of writing to $0.01828, after touching a 24-hour low of $0.01757. On the other hand, LUNA price was up nearly 1% to $0.3884, while reaching a one-day high of $0.3901.
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