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The tumbling network has no major update Terra land is having its winter fall. In a pivotal moment for the Terra Luna Classic network, a contentious proposal sought to decrease the number of validators, sparking a heated debate within the community. Despite concerns raised over potential threats to security and fears of centralization risks, the proposal managed to secure passage, triggering a significant impact on the network’s assets—LUNC and USTC.
Reducing Validators in Terra Classic
At the forefront is Proposal 11888, boldly suggesting a shift: “Decrease the validator set of Terra Classic to 100 from 135.” Supporters argue that this streamlined approach would safeguard the network from potential threats, but not everyone is on board. Some worry it might lead to more centralization, contradicting the decentralized essence of blockchain networks. Questions arise about the effects on security and smaller validators nurturing the chain’s growth.
The Community Stands Divided
Despite the contentious debates, the proposal ultimately passed, albeit with a mixed reception. The voting outcome displayed a split within the community, with 31.69% voting “Yes,” 22.49% casting “No” votes, and 46 abstentions. Notably, significant validators refrained from taking a definitive stance; Allnodes, the largest validator, opted for an “Abstain” vote.
Impact on Lunc & USTC Assets
The aftermath of the decision made a substantial impact on the Terra Luna Classic assets—LUNC and USTC. After a spike in both assets, LUNC fell 10% to $0.000237. USTC fell 15% to $0.055. The price drop and trading volume drop indicate a drop in trader interest post-decision. LUNC’s all-time high is $119.18, but it would take $690 trillion to get it, surpassing the NYSE. At the highest market cap, LUNC traded at $0.007. 10,000% more than the current pricing. This pricing is much lower than its ATH of $119.18 owing to inflation.
Investors proceed with caution, sensing the need for more discussions and evaluations. The decision’s impact on the network’s future, security, and decentralization goals calls for urgent dialogue and careful consideration of what lies ahead.
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