Terra Classic Ecosystem Update: Nakamoto Milestone Strengthens Network Amid Burn Slowdown
Terra Classic (LUNC) continues to reinforce its post-crash resilience, achieving a notable milestone in decentralization with the Nakamoto Coefficient improving to 5. This metric, which measures the minimum number of validators required to control one-third of the network’s staking power, marks a significant enhancement from 6 in March 2025 and far surpasses the early post-collapse concentration levels of 3 to 4. The improvement highlights growing validator diversity and community-led efforts to prevent centralization, further stabilizing governance and network reliability. Terra Classic now boasts over 100 active validators, signaling an increasingly distributed ecosystem that reduces the risk of outages and manipulation.
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Validator Growth and Staking Expansion
According to on-chain analytics platform Stakebin, roughly 15 percent of the circulating LUNC supply—around 970 billion tokens—is currently staked. This rise in delegations has strengthened validator engagement, with community advocates urging wider participation to push the Nakamoto Coefficient beyond 10, a benchmark comparable to Ethereum’s resilience. The ongoing emphasis on staking incentives and transparent governance continues to shape Terra Classic’s recovery narrative after the 2022 implosion that devastated its ecosystem.
Deflationary Challenges and Burn Progress
Despite improved decentralization, LUNC’s deflationary trajectory has slowed. Recent Terraport data shows daily token burns averaging 172.84 million as of November 7, representing only 0.0027 percent of total supply. This pace has left the token’s maximum supply at approximately 6.48 trillion, even though cumulative burns since May 2022 have surpassed 411 billion tokens.
As daily network transactions dipped to around 1.2 million—a 12 percent weekly decline—the community is debating proposals to raise the current 0.2 percent burn tax to 1.2 percent for interchain swaps. If approved, the change could accelerate deflation and bring renewed momentum toward the long-term goal of a $1 repeg. Meanwhile, USTC burns remain low, with just 18 million tokens burned on November 7, keeping its price near $0.00012.
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Price Performance and Market Outlook
LUNC’s price gained 5.6 percent on November 8 to trade around $0.00003797, nearing the top of a multi-month descending channel. Technical indicators point to cautious optimism—RSI stands at 58, volume has climbed 18 percent, and MACD shows waning bearish momentum. Analysts suggest that a breakout above $0.000039 could trigger a run toward $0.000072, while strong support remains near $0.000035.
Path Forward for Terra Classic
Although Terra Classic’s revival remains slower than faster-growing ecosystems like Solana or Ethereum, its structural strengthening is undeniable. With a circulating supply of 5.55 trillion and 15 percent staked, network uptime now exceeds 99.8 percent. As the community eyes SDK upgrades for enhanced Cosmos interoperability and new initiatives like the proposed EUTC stablecoin fork, LUNC’s foundation appears stronger—poised for sustainable growth once renewed demand meets its deflationary ambitions.
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