The Terra Luna Classic proposal to decrease validator numbers has been approved, raising concerns about centralization and security. This led to a 10% drop in the LUNC token and a 15% decline in USTC. Investors are closely watching the situation for potential impacts on the Terra Luna Classic ecosystem.
The Terra Luna Classic community has given the green light to a proposal aiming to reduce the number of validators on the Terra Classic chain. While this decision faced criticism from certain validators and community members over concerns about security, centralization, and potential growth risks, it managed to surpass the approval threshold. Notably, some validators within the top 100 voted in favor of the proposal, contributing to its acceptance.
Terra Luna Classic Votes to Reduce Validators, Sparks Debate
The recent proposal numbered 11888, titled “Decrease the validator set of Terra Classic to 100 from 135,” has successfully crossed the pass threshold. The proposal’s primary objective is to eliminate small validators, arguing that the current requirements make it easier for bad actors to impersonate others and create validators.
According to the proposal, the Terra Classic validator set size is currently 130, and the validator in the 113th place has 1.86 million LUNC delegated to them, indicating the ease with which anyone can launch a Terra Classic validator.
Despite its success, the proposal has faced resistance from validators who believe that inactive and non-participating validators should be removed. Proponents of the proposal argue that it will benefit small validators through the dynamic commission module and re-delegation.
As of the voting results, the proposal has garnered 31.69% “Yes” votes, 22.49% “No” votes, and 46 “Abstain” votes. The community remains divided on the potential consequences, with concerns raised about the proposal’s impact on decentralization, security, and the contributions of small validators.
Notably, the largest validator, Allnodes, chose to abstain from taking a stance, contributing to the nuanced debate within the Terra Luna Classic community. Of the total votes cast, 14 were in favor (“Yes”), 25 against (“No”), and 16 abstained.
LUNC and USTC Prices Experience Volatility After Striking 300% and 400% Surges
The prices of LUNC and USTC have recently undergone significant fluctuations, showcasing a remarkable 300% and 400% surge, respectively. The surge was initially triggered by positive announcements from Binance and the community. However, LUNC witnessed a 10% decline in the last 24 hours following its impressive 150% rally over the past week, with the current trading price at $0.000237. The trading volume has also seen a 20% decrease, signaling a potential decline in trader interest.
On the other hand, USTC’s price stands at $0.055, reflecting a 15% decrease after its substantial rally earlier in the week. The 24-hour trading range for USTC is between $0.0529 and $0.0647, accompanied by a 12% decline in trading volume over the past 24 hours. These fluctuations underscore the dynamic nature of the crypto market, with prices responding to both positive and negative developments.
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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