Community Divided as Terra Classic Governance Faces Two Key Proposals

The Terra Classic community is once again at the center of a heated governance debate, as two major proposals — 12199 and 12198 — have drawn contrasting reactions from validators, developers, and token holders. While both proposals address important aspects of the ecosystem’s progress, their implications for transparency, ethics, and timing have sparked intense discussions across forums and social media platforms.
Proposal 12199 Sparks Caution
Proposal 12199, which sought to authorize a new operational process involving financial incentives and procedural changes, has faced significant skepticism. Many community members expressed concern about the lack of regulatory clarity and the potential risks associated with its immediate implementation.
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One validator summarized the sentiment clearly: “At this moment and in the current legal setting, I see too many red flags here and I can’t support it. I’m afraid it could do more harm than good right now.” The validator added that they might support the proposal in the future if key compliance and procedural issues are resolved.
This cautious stance reflects a broader theme within the Terra Classic ecosystem — the desire to move forward responsibly, ensuring that each governance decision aligns with both long-term sustainability and regulatory prudence.
Proposal 12198 Gains Overwhelming Support
In contrast, Proposal 12198 has received strong approval across the board. Described as an ethical and collectively beneficial step, it appears to focus on strengthening community transparency and ecosystem collaboration. One validator expressed immediate support, stating, “I didn’t even have to think for a moment here. From all points of view, I see it as the right and collectively ethical thing to do.”
The proposal’s content resonates with the broader vision of rebuilding the Terra Classic network on principles of accountability and shared progress. With many validators casting a “YES” vote, Proposal 12198 demonstrates how aligned values can unify the community toward a common goal.
Governance as a Measure of Maturity
These contrasting votes reveal much about Terra Classic’s evolution as a decentralized ecosystem. While Proposal 12199’s rejection highlights the network’s growing awareness of compliance and risk management, Proposal 12198’s approval reflects its ethical and community-first mindset.
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As the network continues to recover from past challenges, the ability to critically assess proposals — supporting what’s right and delaying what’s premature — shows that Terra Classic governance is maturing into a thoughtful and responsible decision-making body.
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