In a major development for the Terra Classic ecosystem, the community has decisively approved a proposal to restore the Inter-Blockchain Communication (IBC) connection with Kujira. This move is set to unlock frozen funds and bolster liquidity for the network.
IBC Upgrade Approved
Proposal 12099, spearheaded by the RakoffToken team, sought to re-enable the IBC client 07-tendermint-178 between Terra Classic and Kujira.
The restoration of the IBC link with Kujira is a critical step in revitalizing the Terra Classic network. IBC technology enables secure interaction between different blockchains, enhancing the potential for asset transfers and greater interoperability.
The proposal received overwhelming support with 99.99% of the votes cast in favor. To achieve this restoration, the IBC client will be upgraded from 07-tendermint-178 to 07-tendermint-246.
The restoration proposal also had unanimous backing from validators, demonstrating the decentralized nature of the project and its commitment to continuous improvement.
Notable validators supporting the move include Interstellar Lounge, Allnodes, Luna Station 88, and HappyCattyCrypto, amongst others, making them 36.
Security Considerations
While the IBC restoration is a positive step, the Terra Classic community is also actively seeking comprehensive solutions to mitigate potential risks from peer-to-peer storm attacks. As an initial security safeguard, a proposal by Genuine Labs aims to reduce the maximum block size from 5MB to 2MB.
Market Impact on LUNC and USTC
The revitalization of the IBC has had a positive effect on the price performance of Terra Classic’s native tokens. According to data from CoinMarketCap, over the past 24 hours, the price of LUNC has risen by 2.79% extending to a promising 10.55% weekly gain. Currently, LUNC trades at $0.0001115, with further bullish sentiment buoyed by the community’s aspiration for the coin to reach $1.
Similarly, the price of USTC has also experienced an upward trend, rising 0.5% in the past day. This follows a 17.41% surge in the previous week, with its current value hovering at $0.01981.
The Terra Classic community’s approval of the IBC restoration underscores their determination to revive the project. This decision, intended to improve network liquidity and release frozen funds, highlights the collaborative spirit driving efforts toward Terra Classic’s resurgence.
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