Terra Luna’s classic community pool has gathered over 5 billion LUNC tokens, but this milestone comes at a time when development activity and Total Value Locked (TVL) on the chain are declining. This situation raises concerns about the possibility of capitulation.
The Terra Luna Classic community pool has reached a significant milestone with a record-high balance of 5 billion LUNC tokens. This achievement provides ample funds for developers and other contributors within the community. However, there’s cause for concern due to a decline in development activity, as indicated by Total Value Locked (TVL) and commits data on the chain.
Concerns Mount as Terra Luna Classic’s Community Pool Hits 5 Billion LUNC
The latest data from StakeBin reveals that Terra Luna Classic’s community pool boasts a substantial balance of 5,005,468,596 LUNC tokens and 11,803,526 USTC. However, despite the ample funds available, the community has struggled to fully utilize them, raising fears of capitulation and setbacks in revival efforts.
According to DefiLlama data, development activity within the Terra Luna Classic ecosystem has seen a significant decline. Total commits plummeted from 760 in March 2023 to just 371 in March 2024, with only 79 commits recorded so far this month. This decline is attributed to a shortage of KYC-compliant developers, as the community transitions to mandatory KYC requirements for chain developments. Additionally, the introduction of the pay-per-job (PPJ) proposal has resulted in rejected or terminated proposals and challenges in securing developer commitments.
The total value locked (TVL) on the Terra Luna Classic chain has witnessed a sharp drop, falling from $7.51 million in December 2023 to $2.27 million presently. Despite ongoing efforts by various groups to enhance utility, the chain has struggled to attract more developers and projects.
Key projects such as Astroport Classic, Terraswap, Eris Protocol, Soluna, and others have seen a decline in contributions, dropping by 5-8% in the last 24 hours. This further compounds the challenges faced by the Terra Luna Classic ecosystem.
In addition, the community has rejected a proposal to establish a dedicated team for the Terra Luna Classic chain. Validators have opposed the proposal, citing concerns about centralization risks, conflicts with the pay-per-job system, and a lack of clarity regarding developer KYC requirements.
Price Declines Hit LUNC and USTC Tokens
LUNC Token Price Analysis: The price of LUNC token has experienced a notable decline of 7% in the past 24 hours. Currently, the token is trading at $0.0000990, with the 24-hour high and low recorded at $0.0000962 and $0.0001048, respectively. Additionally, trading volume has also decreased by 23% within the same period, signaling a waning interest among traders.
USTC Token Price Analysis: Similarly, the price of USTC token has also witnessed a 7% decrease in the last 24 hours. Presently, the token is trading at $0.0167, with the 24-hour low and high standing at $0.0163 and $0.0177, respectively. Traders appear to be taking short positions on both LUNC and USTC tokens amid the ongoing market downturn.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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