#DOGSONBINANCE #BNBChainMemecoins #TelegramCEO #LowestCPI2021 #SahmRule Terraform Labs reveals a major governance proposal for the Terra blockchain, gaining attention from the crypto community. The proposal, which aims to mark the final chain upgrade under TFLâs direct oversight, is expected to trigger a rally in LUNA and LUNC tokens. It involves several upgrades, including a major token burn proposal among others.
Itâs worth noting that as of writing, the majority votes were cast in favor of the proposal, with no votes towards a âNoâ or âNo with Vetoâ.
Final Upgrade Proposal Of Terra
The TFLâs governance proposal, known as Proposal 4818, started on August 22 and the voting will end on August 29. It aims to upgrade Terraâs mainnet to version 2.12.4. Notably, this move comes as TFL said that it is winding down its operation following an SEC settlement and implementation of its Chapter 11 plan.
This upgrade, if approved, will mark the final development by TFL. In other words, the TFL will no longer support future chain updates, and the blockchainâs future will be left in the hands of community-driven initiatives like the Phoenix Directive.
Meanwhile, one of the major aspects of this upgrade is the enforcement of a 5% minimum commission rate for validators. This follows a previous governance decision under proposal 4803, which established the global minimum commission rate. Notably, the upgrade will ensure that all the current and new validators follow this rate, which would help in enhancing the networkâs integrity.
However, the most notable change, which is already gaining traction, is the burning of TFLâs LUNA holdings. TFL aims to burn LUNAthat it had in its possession, complying with the bankruptcy court order. This would include assets locked in a vesting contract, which will be burned directly following the upgrade.
In addition, the TFL plans to address the issue of compromised wallets and illegally minted assets from the IBC exploit. It will help ensure that the assets are permanently removed from circulation, reflecting a step towards usersâ safety and transparency.
Meanwhile, the removal of the blacklist functionality is another significant change with the upgrade. It which was initially implemented to prevent further withdrawals by the IBC attackers.
LUNA And LUNC Prices To Rally?
The decision to burn a substantial amount of LUNA has fueled optimism among investors and the Terra community. Token burns typically reduce the circulating supply, which can create upward pressure on prices if demand remains constant or increases.
Having said that, many are speculating that LUNA and LUNC could experience a significant price rally following TFLâs latest announcement. Notably, 98.55% of the total votes were cast in favor of the proposal, with only 1.45% vote for Abstain.
Meanwhile, as TFL steps back, the Terra blockchainâs future will increasingly rely on community-led initiatives. The Phoenix Directive, set to take over operational responsibilities, will play a crucial role in guiding the networkâs evolution.
However, as of writing, LUNC price was down nearly 5% to $0.00008412, with its trading volume declining 52.56% to $17.81 million over the last 24 hours. On the other hand, the LUNA price was down 3.83% to $0.3707, after touching a high of $0.3889 in the last 24 hours.
