The Terra LUNA Classic community is actively working towards implementing crucial changes within the network to enhance its efficiency and address the challenges faced by the LUNC token and USTC stablecoin. These proposals have gained significant traction and support from community members, reflecting the commitment to improving the network’s functionality and stability.
Renowned network validator JESUSisLORD has taken to Twitter to unveil two critical governance proposals that are currently under consideration. The first proposal, known as Proposal #11639, aims to reduce the staking undelegation period from 21 days (3 weeks) to 14 days (2 weeks). This change is intended to introduce greater flexibility for users engaging in staking activities, encouraging increased participation and ultimately reducing the circulating supply of LUNC tokens.
The validator believes that reducing the undelegation period will have a positive impact on the LUNC token. By shortening the period to 14 days, it becomes possible to mitigate volatility and avoid the complexities and penalties associated with rapid undelegation proposals. This change would provide stakers with more control and responsiveness, allowing them to adjust their staking positions more efficiently.
The second proposal, known as Proposal #11640, focuses on doubling the gas fees within the network. This adjustment would result in a doubling of all on-chain gas fees during the next chain upgrade, leading to increased funding for the community pool and staking rewards. The revenue generated from gas fees would be divided equally between the community pool and staking rewards, providing additional support to both areas.
The rationale behind the proposal to double gas fees is to address the current affordability of fees on the network. Currently, it costs approximately 8 LUNC to send a transaction ($0.00067 USD) and 67 LUNC to withdraw staking rewards ($0.0056 USD), which amounts to around half a cent. With the proposed doubling of gas fees, the fees for sending transactions would rise to 16 LUNC ($0.0013 USD) and withdrawing staking rewards would require 134 LUNC ($0.011 USD). These adjustments would result in gas fees ranging from 0.13 cents to 1.1 cents per transaction based on recent LUNC prices.
These slight adjustments in gas fees have the potential to improve funding for the community pool, enhance staking activities, and counter the ongoing decline in staking APY (Annual Percentage Yield). Importantly, even after the proposal’s approval, gas fees will remain affordable, ensuring accessibility for network participants.
At the time of reporting, the price of LUNC is experiencing a decline, with a decrease of 1.58% over the last 24 hours. The altcoin’s value has fluctuated from a high of $0.00008919 to a low of $0.00008363. As of now, LUNC is trading at approximately $0.00008621.
As the Terra LUNA Classic community moves forward with these proposals, the potential impact on network efficiency and the long-term stability of LUNC and USTC remains to be seen. These governance changes demonstrate the community’s commitment to adapting and optimizing the network to meet the evolving needs of its participants and stakeholders. By actively addressing challenges and seeking improvements, the Terra LUNA Classic community aims to strengthen the network’s foundation and support the growth and adoption of the LUNC token and USTC stablecoin.
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