The Terra Luna Classic (LUNC) community is currently experiencing divisions due to a new governance proposal. Critics argue that the proposal could harm the network’s functioning and decentralized structure, while supporters assert that it will enhance decision-making efficiency. As disagreements within the community ignite debates, a notable concern has emerged regarding low participation rates in the critical vote.
Governance Proposal and Community Reaction
The current governance proposal aims to establish a sub-DAO (decentralized autonomous organization) within the Terra Classic network. This structure is intended to decentralize decision-making processes. Additionally, the proposal includes the formation of a special team for emergencies. Proponents claim that this arrangement will accelerate decision-making and increase the network’s efficiency.
However, opponents argue that the foundational principles of decentralization could be compromised. Well-known LUNC validator MrDiamondhandz labeled this initiative as “the worst move in recent times.” He expressed concerns that, if approved, the proposal could lead to significant disruptions in operations and negatively affect community interests.
Voting Results and Market Impact
The voting results revealed that support for the proposal was insufficient. Only 39.41% of participants voted in favor, while 7.95% voted against it, and 25.47% submitted veto votes. However, total participation remained at 28.95%, below the required 40% threshold for validity.
These developments have intensified divisions within the Terra Luna Classic community. Tensions persist between those who wish to maintain decentralized decision-making and those advocating for increased efficiency.
From a market perspective, despite the ongoing debates, there has been no significant change in the price of LUNC. However, future decisions regarding governance structures are expected to impact market volatility.
Recently, the token burning process within the Terra Luna Classic network has been viewed positively by the community. Approximately 400 billion tokens have been burned, which could have long-term effects on the valuation of the LUNC network.
