The Terra Classic community finds itself grappling with challenges and has put forth a proposal aimed at addressing some pressing issues within the Terra Classic chain. Specifically, this proposal revolves around increasing the minimum deposit requirement on the Terra Classic chain, which currently stands at one million Terra Luna Classic (LUNC), an equivalent of approximately $57.23.
This proposal, known as Parameter Change Proposal #11780, identifies a significant uptick in spam proposals on the blockchain as a primary concern. In response to this issue, the proposal suggests a substantial hike in the minimum deposit required on the network for eligibility to submit proposals on Terra Classic Station. The proposed new minimum deposit threshold would be set at five million $LUNC.
What’s noteworthy is the overwhelming support this proposal has garnered within the Terra Classic community. Currently live on Terra Classic Station, it enjoys a staggering 93.75% approval rate. Key players in the Terra Classic ecosystem, including Happy Catty Crypto, SolidVote, Lunanauts, and AllNodes, have thrown their support behind the “Initiative to combat spam proposals by increasing minimum deposit amount to 5M LUNC.”
Terra proposal
The rationale behind this proposal lies in the depreciation of both $LUNC and $USTC prices. The proposal’s author argues that the one million LUNC minimum deposit is no longer effective in deterring spam proposals, given the decline in the value of LUNC. SolidVote, a Terra blockchain validator, concurs with this sentiment, stating that while the proposal may not necessarily deter scam proposals, it represents a sensible adjustment to make, particularly in light of other security risks on the chain.
Meanwhile, the native token of Terra Classic, LUNC, finds itself struggling within the broader cryptocurrency market. It currently hovers just inside the top 100 cryptocurrencies by global market capitalization, having reached a monthly low of $334 million and a record low price of $0.00005732. The coin has been locked in a descending triangle pattern for the past three months, indicative of the challenges it faces.
From a technical perspective, there is potential for a significant breakout in the value of $LUNC. This could materialize if the price of $LUNC manages to remain above the critical support level at $0.00058046. To address the downward trajectory of Terra Classic’s price, the Layer-1 Joint Task Force (L1JTF) team is actively exploring the restoration of the LUNC/USTC market swap function. This move is intended to substantially reduce the circulating supply of both tokens, a strategy aimed at stabilizing the token’s value.
