Terra Classic KYC Proposal Wins Community Nod

LUNC News: Terra Luna Classic proposal making KYC compulsory for all L1 developers is approved by the community after contradictory voting by members and validators. Community members in favor of the proposal calls it a defining moment, with a massive voting turnout of 90.5%.

As the Terra Luna Classic community pushes to increase development on the chain with third-party developers, it became crucial to introduce some security measures to prevent detrimental damage to the chain.

Terra Luna Classic KYC Mandate Passes Amidst High Turnout

Terra Luna Classic proposal 12033 “Compulsory KYC for all L1 developers” by SolidVote LUNC Validator officially passed by the community, as per the latest voting details on the Station wallet. JesusIsLord, the biggest validator among the support group, said “It was the closest vote in LUNC history.”

SolidVote, a key validator, raises concerns about the vulnerability of Terra Classic’s chain due to its open nature that allows any developer to create decentralized applications (dApps). The most significant threat, according to SolidVote, is the potential for an unidentified developer to engage in short selling of Terra Luna Classic, which could jeopardize the stability of the entire ecosystem.

The proposal saw a massive voting turnout of 90.5% as it was crucial for boosting the chain’s security. The proposal received 34.94% ‘Yes’ votes in support, along with 16.86% ‘No’, 17.89% ‘No with veto’ and 30.31% ‘Abstain’ votes. Top validator Allnodes voted Abstain, but last-minute votes and support from over 40 validators passed the proposal.

BREAKING: $LUNC proposal #12033 requiring L1 developers to KYC to a third party provider in order to submit code on the #LunaClassic blockchain has officially PASSED. Thank you to all who voted, time to rebuild #LUNC. 🛠️🌕💎🤲🏻 #Crypto #LUNCcommunity pic.twitter.com/hvA9CaThF7

— Mr. Diamondhandz1💎 (@MrDiamondhandz1) February 8, 2024

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Why the Proposal Is Crucial for Terra Luna Classic?

As CoinGape reported, the Terra Luna Classic proposal urges anyone seeking a governance vote for a spend proposal to work on the chain to undergo a compulsory KYC process with a third-party company. If a developer has not previously completed the KYC, the cost will be added to their spend proposal by the proposer. The details will be undisclosed, and will only be released in case there are legal disputes.

“Anybody can work on the Luna Classic blockchain anonymously. This poses a serious risk to the chain. For example, a rogue developer could open a short position and then damage the chain to gain profit,” said SolidVote Validator.

When a spending proposal by a developer is submitted, each developer on the team must have completed the KYC process before working on the chain. The proposal also required any new member added to the team after a proposal is passed to complete the KYC. The set of safety and security measures are taken after new developer groups propose to work on the chain.

Also Read: Robert Kiyosaki – ‘No Soft Landing’ As Banks Will Fail, Recommends Buying Bitcoin

LUNC and USTC Prices to Rally?

Terra Luna Classic tokens extend the ongoing rally after the crypto market recovery today. LUNC price has rallied more than 20% amid rising trading volumes.

LUNC price has traded in a bearish sentiment in the last 24 hours, with the price currently trading at $0.00010864. The 24-hour low and high are $0.0001071 and $0.000111, respectively. Trading volume has been increasing in the past 24 hours.

Meanwhile, USTC price also jumped after the proposal was passed, with a 3.59% jump in the last 24 hours. The price is currently trading at $0.0287284. The 24-hour low and high are $0.02535 and $0.02631, respectively. Furthermore, trading volume rises 19.74%.

Also Read: Bitcoin ETF Sees $1.7B Inflows Despite COPA Vs CSW Impacts Market Dynamics

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Varinder Singh

Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.