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Terra Classic is currently voting on a significant proposal aimed at re-enabling interblockchain communication (IBC) with the Osmosis protocol. If the community approves this proposal, it will reinstate transfers between Terra Classic and Osmosis. This move comes after the expiration of Client ID 07-tendermint-12 on the columbus-5 network, which previously referenced the Osmosis validator set.
How has the LUNC Price Moved Recently?
Today, Terra Classic (LUNC) is trading at $0.000106 with a 24-hour trading volume of $11.19 million. The cryptocurrency has a market capitalization of $610.85 million and a market dominance of 0.03%. Over the past 24 hours, LUNC's price has declined by 2.79%.
Historically, LUNC reached its peak price of $119.01 on April 5, 2022. Its lowest point occurred on May 13, 2022, when it dropped to $0.00001651. Since this all-time low, the highest price LUNC has achieved is $0.000590.
Currently, the price prediction sentiment for Terra Classic is bearish, despite the Fear & Greed Index indicating a level of 72, which falls under the 'Greed' category.
Terra Classic's circulating supply stands at 5.79 trillion LUNC out of a maximum supply of 6.88 trillion LUNC. The annual supply inflation rate is -1.49%, indicating a decrease of 87.43 billion LUNC over the past year.
LUNC Price To Reach $3 Soon?
Proposal 12104, known as "Reactivate Osmosis IBC," is currently under consideration on the Station wallet. This proposal, introduced by developer Fragwuerdig, who is a former core development team member, aims to re-enable interblockchain communication (IBC) between Terra Luna Classic and Osmosis.
Recently, Terra Classic community member and validator Vegas pointed out the need to update the Osmosis IBC client to ensure the smooth operation of interchain transfers between LUNC and Osmosis. The current client, identified as 07-tendermint-12, needs to be upgraded to version 07-tendermint-250 for seamless IBC functionality.
The proposal has received overwhelming support, with over 96% of votes in favor so far. However, there is a small contingent opposing it, with 3% of votes marked as "No with veto." The voting deadline is set for May 25. Validators such as LuncGoblins, Moon Rabbit Validator, and MoonRunners have all endorsed the proposal, highlighting its critical importance for the network.
Restoring the IBC between Terra Luna Classic and Osmosis is essential for re-establishing efficient communication and transaction capabilities between these two blockchains. IBC facilitates seamless communication and asset transfers between different blockchain networks.
Upgrading the IBC client from 07-tendermint-12 to 07-tendermint-250 is necessary to keep the IBC relay operational and up-to-date. This upgrade addresses the technical obsolescence of the current client, ensuring continued interoperability and performance of the Terra Luna Classic network.
The substantial community support for this proposal underscores its importance in maintaining network functionality and enabling efficient interchain transfers.
Binance, the leading cryptocurrency exchange globally, recently executed another substantial burn of Terra Luna Classic (LUNC) tokens. In its 21st round of the LUNC burn mechanism, Binance eliminated an additional 1.4 billion LUNC tokens. This recent burn pushes Binance's total LUNC burned to date to over 59 billion tokens.
Collectively, the Terra Luna Classic community has burned more than 113 billion LUNC tokens. Since 2022, Binance has consistently supported the revival of Terra Luna Classic by conducting monthly LUNC burns, aiding in the reduction of the token's circulating supply.
Token burning is a strategic process used to decrease the circulating supply of a cryptocurrency, potentially enhancing its value by creating scarcity. Binance's regular burning of LUNC tokens is a part of its strategy to support the Terra Luna Classic community and assist in the token's revival. By burning 1.4 billion LUNC in its latest round, Binance not only reduces the supply but also reaffirms its ongoing commitment to the community’s objectives.
The cumulative burn of over 59 billion LUNC tokens by Binance, alongside the broader community’s efforts resulting in over 113 billion tokens burned, highlights a significant collective effort to stabilize and potentially increase the value of Terra Luna Classic. Binance's monthly burns are crucial in this ongoing process, demonstrating the importance of coordinated actions in the cryptocurrency market to achieve long-term goals.
Based on the significant token burns executed by Binance and the Terra Luna Classic community, the LUNC circulating supply has been substantially reduced, which can create upward pressure on the token's price due to increased scarcity. Binance alone has burned over 59 billion LUNC, contributing to a total of over 113 billion tokens burned by the community.
However, while these efforts support the potential for price appreciation, predicting a specific target such as $3 involves considering broader market factors, investor sentiment, and overall demand for LUNC. Although the burns are a positive step towards price stabilization and potential growth, reaching $3 would likely require sustained demand and further reductions in supply, alongside favorable market conditions.