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Highlights
- Terra Luna community approves proposal to burn unbacked Axelar assets.
- The proposal aims to strengthen the Terra Luna ecosystem and restore investor trust.
- LUNA price surges 4% following approval of burn proposal.
The Terra Luna community has taken a decisive step to strengthen its ecosystem. In a recent governance vote, members overwhelmingly approved a proposal to burn unbacked Axelar assets. This move has sparked fresh optimism among investors, leading to a 4% surge in LUNA’s price. With a strong majority voting in favor, the proposal signals a commitment to restoring trust in the Terra Luna network.
Terra Luna Community Votes To Burn Unbacked Axelar Assets
The latest Terra Luna governance proposal, identified as v2.14.0, focuses on eliminating unbacked Axelar assets. This chain upgrade aims to remove certain unsupported tokens, ensuring better asset security within the network.
Notably, the proposal was submitted on January 26, with voting set to conclude in three days. As of now, over 202.67 million votes support the proposal, with minimal opposition. The majority decision underscores the community’s determination to enhance the ecosystem’s credibility.
LUNA Price Reacts To Major Governance Move
The approval of this proposal has had an immediate impact on LUNA’s market performance. Investor sentiment turned bullish following the announcement, pushing LUNA price up by 4% to $0.3204. Notably, its trading volume also soared 73% to $39.38 million.
Simultaneously, LUNC price also recorded a 4% gain and exchanged hands at $0.00007729. Besides, CoinGlass data showed that LUNC Futures Open Interest soared more than 3%, indicating strong market confidence.
Analysts believe the burning of unbacked assets could further boost LUNA’s valuation in the coming weeks. Market participants view this as a critical step in restoring stability and investor confidence in Terra Luna. The community has actively pushed for initiatives that enhance token utility and network resilience.
Charles Hoskinson Hints at Terra Luna Classic Collaboration
Adding to the excitement, recently Cardano founder Charles Hoskinson has shown interest in the Terra Luna Classic (LUNC) ecosystem. His engagement follows a pitch by LUNC validator MrDiamondhandz1, who highlighted the network’s ongoing efforts to revive its algorithmic stablecoin, USTC.
The LUNC validator noted that the community took over the project after Do Kwon’s exit and has since received strong backing from Binance. Monthly token burns and ecosystem upgrades have played a crucial role in keeping the project alive.
Meanwhile, Hoskinson responded positively, stating that Cardano developers have various ideas for algorithmic stablecoins and would be keen to explore potential synergies. This statement has fueled speculation about a possible collaboration between Cardano and LUNC.
On the other hand, with the burn proposal gaining strong approval, the focus now shifts to execution. The elimination of unbacked assets could reduce risks and strengthen Terra Luna’s long-term sustainability. For now, all eyes remain on how these developments unfold and whether they can fuel a sustained rally in LUNA and LUNC prices.
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