The Luna Classic community recently voted for proposal 11242
The proposal will stop the re-striking of burnt LUNC and raise the price of gas
After the catastrophic collapse of Terra, Terra Classic [LUNC] worked tirelessly to ensure recovery. While the rally was challenging at first, it became more so due to the widespread FUD that arose after the collapse of Terra.
In addition, the ensuing prolonged bear market could also be to blame. However, the token may be on the mend thanks to a recently approved proposal from the community.
Enter proposal 11242
In response to the sharp decline in the on-chain burn rate of LUNC tokens over the past four weeks, proposal 11242 was submitted.
In an effort to halt the LUNC’s resurgence of burns by effectively zeroing seigniorage incentive policies, the proposal was introduced in early 2023. More than two-thirds of voters in the network approved the plan.
Read Luna Classics [LUNC] Price Forecast 2023-24
Before that, after each time slot, 10% of LUNC tokens were re-minted from the 0.2% burn tax and added to the common pool. The adoption of the proposal effectively ended LUNC’s re-burn by setting the seigniorage pay policy to zero.
The other part of the proposal was to fund the community’s oracle pool by doubling the network’s gas prices, which would in turn increase stake rewards.
Binance too signaled its support for the proposal, which calls for an upgrade to be implemented by 14 January. Binance announced support for the upgrade in a January 13 press release. The exchange would also temporarily halt deposits involving USTC, LUNC and ANC.
LUNC Continues Bullish Run
On the daily time frame chart, LUNC reacted positively. The value was up 4.92% when the trading session closed on January 13. The value was up more than 5% at the time of writing and was trading near $0.00018.
Moreover, as evidenced by the Relative Strength Index (RSI), the overall trend of the token has been bullish. The RSI line was above neutral territory and above 60 on a daily chart. Furthermore, the plus DI and signal line on the Directional Movement Index (DMI) were above 20.
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Developers are firing on as the upgrade approaches
There is also a significant increase in LUNC’s development efforts. An increase that coincides with the planned network upgrade.
The token development activity at the time of writing was 15.45. The current value of the statistic represents an all-time high, surpassing that of the past six months by a wide margin.
This post Terra Classic tries to recover with this proposal, is LUNC at risk?
was published first on https://ambcrypto.com/terra-classic-attempts-recovery-with-this-proposal-is-lunc-at-a-risk/