In response to a growing concern over the increasing volume of spam proposals on the Terra Classic blockchain, the Terra Classic community has put forward a proposal to raise the minimum deposit required for proposal eligibility. The current minimum deposit stands at one million Terra Luna Classic (LUNC), equivalent to approximately $57.23. However, Parameter Change Proposal #11780, now live on Terra Classic Station, suggests a significant increase in this threshold to five million LUNC.
Read Also: Shiba Inu (SHIB): A Rollercoaster Ride Towards Millionaire Dreams
Overwhelming Support for the Proposal
Parameter Change Proposal #11780 has garnered substantial support within the Terra Classic community, with an impressive 93.75% approval rate. Key players in the Terra ecosystem, including Happy Catty Crypto, SolidVote, Lunanauts, and AllNodes, have all given their nod of approval to the “Initiative to combat spam proposals by increasing minimum deposit amount to 5M LUNC.”
Rationale Behind the Proposal
The author of the proposal has pointed to the declining value of LUNC and USTC tokens as a driving factor behind the need for this adjustment. They argue that with the drop in the price of LUNC, the existing one million LUNC minimum deposit is no longer effective in deterring spam proposals. SolidVote, a Terra blockchain validator, has supported this move, stating, “I don’t think it will have any effect on scam proposals, but it’s a sensible adjustment to make regardless,” while acknowledging other security risks on the chain.
Initiative to combat spam proposals by increasing minimum deposit amount to 5M LUNC
We currently have seen an increase in "SPAM" proposals going up, since the price of LUNC has dropped, 1M LUNC is no longer effective in combatting these types of proposals, this proposal will…
— Hexxagon (@hexxagon_io) September 8, 2023
LUNC’s Struggles in the Crypto Market
LUNC, the native coin of Terra Classic, has faced its fair share of challenges in the crypto market. It currently trades just inside the top 100 cryptocurrencies by global market capitalization and recently hit a monthly low of $334 million, with a record low price of $0.00005732. The coin has been trading within a descending triangle pattern for the past three months.
Read Also: The Impact of Vitalik Buterin’s SHIB Token Burn on Shiba Inu’s Historic High
Technical Analysis and Outlook
In technical terms, LUNC could potentially break out of its descending wedge formation and embark on a nine-fold breakout run if the price remains above the critical support level at $0.00058046. However, some doubts have been raised regarding this potential breakout, as LUNC has been trading below the mentioned support barrier for the last couple of hours, according to data from CoinGecko.
$RNDR , 5.1X+ –> $7.8501 $LUNC, 9X+ –> $0.00058046$FLOKI, 16X+ –> $0.0002761498$JASMY , 768X+ –> $2.905
What may be mind boggling is that this can only be modest targets, derived from technical analysis/connections⌛…
— JAVON⚡️MARKS (@JavonTM1) September 10, 2023
Efforts to Stabilize Terra Classic’s Price
In an effort to counter the falling price of Terra Classic, the Layer-1 Joint Task Force (L1JTF) team is currently testing the restoration of the LUNC/USTC market swap function. This move aims to reduce the circulating supply of both tokens, potentially helping to stabilize their prices.
As the Terra Classic community rallies to combat the influx of spam proposals, the proposal to increase the minimum deposit requirement to five million LUNC has garnered substantial support. While the fate of LUNC’s price remains uncertain, the community’s efforts to maintain stability and security on the Terra Classic blockchain remain a top priority. Stay tuned for further developments as the Terra Classic ecosystem continues to evolve.