Terra Classic v3.5.0 Upgrade Marks New Phase of Stability for LUNC and USTC
Terra Classic (LUNC), the enduring blockchain that emerged from the ashes of the 2022 Terra collapse, has achieved a significant breakthrough with the successful rollout of its v3.5.0 network upgrade. Launched on August 15, 2025, this upgrade centers on the reactivation of the Market Module, a key mechanism aimed at restoring stability between LUNC and TerraClassicUSD (USTC).
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Reactivating the Market Module
The Market Module, deactivated after the 2022 crisis, once facilitated swaps between LUNC and USTC but contributed to the chain’s downfall through uncontrolled token minting. The new version, however, is a “no-mint” implementation, ensuring that no new LUNC or USTC tokens can be created. Instead, it relies on a deflationary system that emphasizes transaction-based burns and controlled liquidity swaps to maintain price balance.
Approved through community governance with over 50 percent validator support, the v3.5.0 upgrade reflects the ecosystem’s renewed focus on responsible and sustainable growth. By reintroducing secure, oracle-backed exchanges between LUNC and USTC, the chain aims to rebuild trust and reestablish its market stability.
Technical Improvements and Ecosystem Revival
The v3.5.0 update also integrates Cosmos SDK 50.13, enhancing cross-chain interoperability and validator incentives. This move positions Terra Classic within the expanding Cosmos ecosystem, paving the way for projects such as Juris (decentralized dispute resolution) and Selenium (cross-chain asset solutions).
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Binance, one of the project’s long-term supporters, temporarily suspended LUNC and USTC deposits and withdrawals during the upgrade to ensure a smooth transition. Following the update, over 415 billion LUNC and 1.8 billion USTC have been burned, reducing circulating supplies and signaling strong community engagement.
Renewed Confidence and Market Outlook
The upgrade comes amid a wave of renewed optimism in the Terra Classic community. Legal resolutions surrounding former founder Do Kwon have removed lingering uncertainty, while new proposals for USTC staking and LUNC-USDC liquidity pools aim to boost on-chain activity. Analysts like Javon Marks have noted bullish technical indicators, with patterns suggesting potential price growth toward $0.00016, representing a 180 percent increase.
Despite challenges such as low trading volumes and exchange delistings, Terra Classic’s v3.5.0 upgrade demonstrates that decentralized recovery is possible through community consensus and transparency. With over 15 percent of LUNC currently staked and a deflationary model in place, the chain is gradually positioning itself as a resilient, value-driven ecosystem in the broader Cosmos network.
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Dr. Olajide Samuel juggles the demands of medical studies with a passion for cryptocurrency. A seasoned blogger, Olajide shares his vast global knowledge of the crypto space, offering insights to enthusiasts. Despite his busy schedule, his commitment to crypto remains strong, and he actively seeks ways to contribute to its future.
