Terra Classic Rejects Key Proposal; TFL Proceedings Boosts LUNC Rally

Highlights

Terra Classic community rejects independent website proposal with 63% veto.
LUNC token rallies 5% despite proposal rejection, showing ecosystem resilience.
Terraform Labs' bankruptcy updates spark optimism, including shuttle bridge reopening.

The Terra Classic community has voted down a proposal to establish a standalone website, prompting widespread debate and speculation in the market. However, the community’s decision has not hindered the performance of Terra Classic’s LUNC token, as evidenced by its recent price surge.

Notably, this upward momentum is likely driven by the recent progress and favorable developments in Terraform Labs’ (TFL) Chapter 11 bankruptcy proceedings. A recent court order in the Chapter 11 bankruptcy appears to have renewed optimism in the community.

Terra Classic Community Rejects Key Proposal

The Terra Classic community has recently voted on a governance proposal to establish an independent website, modeled after Bitcoin.org. This proposed independent website was intended to integrate design processes and concept workshops, fostering a more cohesive community.

However, the Terra community’s proposal received minimal support. Only 4% of the votes were in favor, while over 21% voted against it. A significant 63% of the participants chose to veto the proposal, and 12% chose the “Abstain” option.

Meanwhile, the rejection of this proposal reflects the Terra Classic community’s reluctance to pursue this direction at this time. But despite the proposal failure, the price of Terra Classic (LUNC) experienced a surprising rally. The token’s value increased by about 5% just after the announcement, capturing market attention and demonstrating the resilience of the Terra ecosystem.

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TFL Bankruptcy Update Boosts Price?

The recent rally in LUNC can be attributed to updates from Terraform Labs’ Chapter 11 bankruptcy proceedings. As reported by CoinGape Media earlier, a new court order has authorized the reopening of the shuttle bridge and a substantial 150 million LUNA burn. This development has sparked renewed interest and optimism within the Terra Classic community.

Meanwhile, the Terra community highlighted the importance of these updates. The reopening of the shuttle bridge allows for the movement of significant amounts of LUNC and USTC.

Terra Classic LUNC Top Holders — Source: LUNCdash

Specifically, the bridge contains 275.7 billion LUNC and 178.4 million USTC, according to data. Notably, the Terra Classic community plans to keep the bridge open for one month. If the funds are not withdrawn during this period, they will be burned, reducing the circulating supply.

This strategic move aims to bolster market confidence and support the long-term stability of the Terra ecosystem. Besides, additional wallets are also scheduled for burning, with detailed information expected by September 2024.

This systematic approach to managing the token supply has been well-received by the community and investors alike. Notably, the burning of tokens tends to positively impact the market sentiment, by reducing the supply which in turn increases the asset’s market value.

However, as of writing, LUNC price traded near the flatline today and exchanged hands at $0.00009081, while hitting a 24-hour high of $0.00009411. The token noted a surge of nearly 27% in the last seven days, reflecting the growing market interest.

On the other hand, USTC price was up about 3% to $0.02074. Furthermore, the asset’s price on a weekly basis increased by about 30%.

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Rupam Roy

Rupam is a seasoned professional with three years of experience in the financial market, where he has developed a reputation as a meticulous research analyst and insightful journalist. He thrives on exploring the dynamic nuances of the financial landscape. Currently serving as a sub-editor at Coingape, Rupam's expertise extends beyond conventional boundaries. His role involves breaking stories, analyzing AI-related developments, providing real-time updates on the crypto market, and presenting insightful economic news. Rupam's career is characterized by a deep passion for unraveling the complexities of finance and delivering impactful stories that resonate with a diverse audience.

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