A significant proposal was recently approved by the Terra Luna Classic community, which sparked speculation on the market. As per the latest update, the authorized plan centers on addressing concerns associated with stability and governance, hence igniting debates on its possible influence on the price of LUNC.
The market’s sentiment has also been strengthened by Binance’s recent LUNC burn, which may contribute to the token’s future surge.
BLV Labs is leading a newly approved proposal that intends to improve the governance (GoV) module. According to the most recent proposal update, the team—three seasoned members of the Cosmos ecosystem—focuses on resolving issues that arise while submitting ideas to the Terra Luna Classic network.
The primary issue is that the 5 million LUNC deposit required to create proposals on the blockchain does not take price fluctuation into account. Put otherwise, the deposit amount may become excessively low or large in response to fluctuations in the LUNC price, making it difficult to preserve the proposals’ value.
But BLV Labs suggests using the Oracle module to prevent this. It will aid in automatically updating the needed deposit amount based on the current LUNC price while ensuring a consistent value of $500.
It is also anticipated to prevent malicious users from flooding the network with suggestions when the token’s price falls sharply. Put another way, by stabilizing the depositing value, it will help to preserve the integrity of the network’s governance mechanism.
In the meantime, the community’s interest in this idea is demonstrated by the approval of it, with over 85% of the vote being in favor. Furthermore, a lot of people have conjectured that it will increase the price of LUNC while building a more safe and effective ecosystem.
At the time of writing, the LUNC price had increased by 1% to $0.000086, and its trading volume had remained close to the $15 million flatline. However, despite a jump in the price, the crypto’s Futures Open Interest was down over 3.5%.
But the optimism within the Terra Luna Classic group seems to have increased as a result of this most recent development, which could support the LUNC rally. Furthermore, it appears that Binance’s continuous LUNC burn process has improved market sentiment.
