LUNC Picks Up 13% Despite Trashed Key Terra Classic Proposal

• Terra Luna Classic bounced back to mid-April levels in a 13.35% rally.
• The governance proposal to set a limit on validator nodes gets dismissed.
• Despite slowing down, LUNC burns cut the remaining supply to 5.79T.

Last weekend, Terra Luna Classic (LUNC) rejected a key governance proposal to prevent the chain’s validators from launching multiple validators on the network. Proposal #12101 seeks to impose a single-validator rule, which has been called “un-actionable” and “pointless” by certain validators like SolidVote.

While most members agree the proposal to limit validator nodes has good intentions, the strategy would be hard to realize because Terra chain validators can simply ignore the implemented rules. Breaking down the voting results, almost 38% of Terra Classic community members voted ‘Yes’, while 37% voted ‘No’, and another 21% vetoed the proposal.

Despite the Terra Luna Classic community being divided into two camps over LUNC chain validator policy, the embattled Layer-1 altcoin inked 8.6% gains to trade at $0.0001162 as of press time. While the validator limit proposal tackles centralization issues due to unlimited validator nodes, a resubmission of the proposal is likely soon.

Black Swan Survivor LUNC Surges 13%

Coinciding with Terra’s malfunctioning stablecoin Terra Classic USD (USTC) massive 28% spike to $0.0233, LUNC’s price trajectory received a significant boost on May 2, scorching above the $0.0001 confluent support line after dropping below this decisive price range on April 30.

Thanks to Binance’s LUNC burning contributions, the circulating LUNC supply is now heavily reduced, with 5,799,402,152,117 LUNC tokens left in circulation. Binance’s latest monthly burning ceremony saw 1.5B LUNC tokens destroyed, but the effort was significantly smaller than the cumulative burns executed in April.