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Terra Classic has taken a significant step in the world of cryptocurrencies with the adoption of LUNC proposal 11487, and many are wondering: what does this mean for future LUNC prices?
The successful acceptance of the proposal marks a positive step towards realizing Terra Classic’s vision of a more decentralized and sustainable blockchain network. It also highlights the importance of community involvement in shaping the future of cryptocurrencies.
With almost half of the voters expressing their support, it’s clear that this decision could have a long-term impact on the Terra ecosystem.
LUNC proposal to assess interest in USTC Repeg strategy
The proposal seeks to see if the LUNC community supports advancing the USTC Repeg proposal and the associated Agora discussion strategy. This proposal is critical in helping the Terra ecosystem restore to its former glory, which was damaged in the USTC crash last year.
Perhaps it’s hype for the #USTC re-peg proposal? pic.twitter.com/pfx0vE4AsG
— Classy 🔮 (@ClassyCrypto_) April 29, 2023
To stabilize the value of USTC, the proposed divergence mechanism would charge a fee on trades that deviate from the target peg. According to the proposal, the commission will range from 0% when the anchor is reached, to 100% when the anchor is deviated by 50%.
Now that the proposal has been approved, the L1 team will set the actual schedule and implement the mechanism in four steps.
Price reaction LUNC
According to data from cryptocurrency market tracker CoinMarketCap, the price of LUNC has recorded a 3.44% decline over the past 24 hours, trading at $0.0001048 at the time of writing. The cryptocurrency has fallen by almost 5% in the last seven days.
Despite the positive attitude of the cryptocurrency community towards the Terra ecosystem during the voting process on the proposal, the growth of LUNC and USTC was short-lived.
The charts of both cryptocurrencies turned green on April 28, but the situation worsened in the following days. The Terra ecosystem is currently struggling to maintain its positive momentum, and LUNC’s price decline is indicative of this struggle.
LUNC has a market capitalization of $659 billion on the daily TradingView.com chart.
LUNC Outlook after proposal 11487 is approved
By approving Proposal 11487, the LUNC community has demonstrated its commitment to the stability and development of the Terra ecosystem. The new proposed divergence mechanism is expected to stabilize the value of USTC and help the Terra ecosystem regain its former glory.
While the recent price cut of LUNC is worrisome for some investors, the introduction of the new mechanism is likely to restore investor confidence in the Terra ecosystem.
As the L1 team works to roll out the mechanism in four phases, investors can look forward to a more stable and robust Terra ecosystem.
– Featured image from Unsplash