As a seasoned crypto investor with a decade-long journey in this dynamic digital frontier, I can’t help but feel a sense of anticipation and optimism upon hearing about Terraform Labs’ final governance proposal for the Terra blockchain. Having witnessed numerous ups and downs, I have learned to read between the lines and interpret the market’s nuances.
Terraform Labs unveils a significant governance plan for the Terra blockchain, sparking interest within the cryptocurrency sector. This proposal, intended to represent the last chain upgrade under TFL’s management, is anticipated to ignite a surge in the value of LUNA and LUNC tokens. The proposal encompasses various enhancements, including a substantial token burn proposition as one of its key components.
As a researcher, I find it noteworthy that at the time of this writing, the majority of votes have been cast in support of the proposal. No votes against or vetoes have been recorded so far.
Final Upgrade Proposal Of Terra
As a researcher, I’m keeping a close eye on the developments with Terra’s mainnet. The governance proposal, referred to as Proposal 4818 by the Terra Foundation (TFL), commenced on August 22 and is scheduled to conclude on August 29. This proposal aims for an upgrade to version 2.12.4 of Terra’s mainnet. It’s important to note that this update comes at a time when the TFL announced its intention to wind down operations, following a settlement with the SEC and the implementation of its Chapter 11 plan.
Once this update is given the green light, it signifies that the Transport for London (TFL) has completed all its developments on the chain. Essentially, TFL will cease to make further updates to the blockchain, and instead, the blockchain’s future course will be determined by community-led initiatives such as the Phoenix Directive.
One significant feature of this update involves implementing a 5% minimum fee for validators, following a decision from proposal 4803 that set the standard global commission rate. Importantly, this upgrade will guarantee that both existing and new validators adhere to this rate, thereby improving the network’s overall integrity.
As an analyst, I’d like to highlight a significant development: Terraform Labs (TFL) is moving forward with the burn of their LUNA holdings. In adherence with the bankruptcy court order, TFL intends to destroy their LUNA reserves. This includes LUNA tokens locked in a vesting contract, which will be eliminated post-upgrade without delay.
Furthermore, the Transport for London (TFL) intends to tackle the problem of hacked wallets and unauthorized tokens produced as a result of the IBC exploit. This action aims to permanently withdraw these assets from circulation, thereby promoting both user security and transparency.
With this update, another important change is the elimination of the blacklist feature, originally introduced to stop further withdrawals initiated by the IBC attackers.
LUNA And LUNC Prices To Rally?
The significant LUNA destruction has sparked hope among investors and the Terra community, as such actions often decrease the available token supply. This reduction in supply can lead to increased price pressure if demand stays consistent or grows.
It’s being widely discussed that LUNA and LUNC could see a strong price surge after TFL’s recent announcement. Interestingly, an overwhelming majority of 98.55% voted in support of the proposal, with just 1.45% choosing to abstain.
In the meantime, with Transport for London (TFL) taking a step aside, the future of Terra blockchain will more and more depend on projects driven by the community. The Phoenix Directive, poised to assume operational duties, is expected to have a significant impact in shaping the network’s development.
In my current analysis, I observe that as I pen this down, the price of LUNC has dipped approximately 5%, landing at $0.00008412. Simultaneously, the trading volume has witnessed a decrease of 52.56% over the past 24 hours, amounting to $17.81 million. Contrastingly, the LUNA price has seen a dip of 3.83%, reaching $0.3707. Earlier in the same 24-hour period, LUNA had touched a high of $0.3889.
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2024-08-27 18:42