Terra Classic Community Rejects Gas Fee Hike, LUNC Price Takes a Hit
The Terra Classic (LUNC) community has resoundingly rejected a proposal (Prop #12095) that aimed for a tenfold increase in gas fees. While initial support existed, the proposal ultimately fell due to concerns over its negative impact on the ecosystem. This shift in sentiment has also affected the price of LUNC, the native token of Terra Classic.
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BREAKING: $LUNC proposal #12095 that would 10X gas fees on the #LunaClassic blockchain has officially been REJECTED! 🔥#lunc #ustc #lunccommunity #defi #LuncBurn #lunc_army #LunaClassic #terraclassic #ustcburn pic.twitter.com/vJxZWBbfpS
— LUNC ARMY (@LUNA_CLassic_) April 24, 2024
Steep Gas Fee Hike Opposed
The proposed gas fee hike aimed to revitalize the Terra Classic ecosystem. However, the community voiced strong opposition through various channels, including a post from the LUNC community channel. Key concerns included:
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- Stifled Ecosystem Growth: Higher gas fees could deter new users and developers, hindering overall growth.
- Limited dApp Adoption: Decentralized applications (dApps) built on Terra Classic could become less attractive due to increased costs, potentially leading to a decline in usage. With Stellar (XLM) recently launching smart contracts, a gas fee hike could make LUNC less competitive.
- The burden on End-Users: Users would face a significant rise in transaction costs, making everyday interactions with the blockchain more expensive.
https://twitter.com/marketinglunc/status/1782316869740810644?t=J78vsWf7LoazcFM3VvZ2MA&s=19
These concerns resonated with a majority of the community, as reflected in the final vote:
- YES: 44.83%
- NO: 6.32%
- NO (VETO): 35.31%
- ABSTAIN: 13.54%
With a combined 41.63% voting against or vetoing the proposal, it failed to pass.
Negative Impact on LUNC Price
Initial support for the proposal led to a temporary rise in LUNC’s price. However, with the proposal’s rejection, the price has reversed course. At the time of writing, LUNC is trading at $0.0001043, reflecting a 36.57% decline over the past month. It has also dropped 6.29% in the past 24 hours, with trading volume dipping by 37.06%.
Looking Ahead for Terra Classic
While the gas fee increase proposal didn’t pass, the Terra Classic community remains active. They have approved other key proposals, and many members believed this controversial proposal posed too many disadvantages. The community can now focus on beneficial proposals as they continue their restoration efforts.
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