Terra Luna’s LUNA and LUNA Classic (LUNC) Soar Amidst Soft Fork Proposal

• Terra Luna’s LUNA and LUNA Classic (LUNC) experience significant price surges amidst a thriving altcoin market.
• A strategic soft fork proposal, including a 5% validator commission, drives momentum for LUNC.

In the midst of a thriving altcoin market, Terra Luna‘s ecosystem has emerged as a focal point of attention, particularly due to the remarkable price surges witnessed in LUNA and its counterpart, LUNA Classic (LUNC). This bullish sentiment is not mere happenstance but is linked to a crucial development within the LUNA Classic community—a proposal for a strategic soft fork.

Advocated by Till Ziegler, this proposal stands as a pivotal shift in governance dynamics. It seeks to introduce a minimum validator commission while incorporating essential technical enhancements. This move follows a previous proposal that aimed to increase the minimum deposit to 5 million LUNC to combat spam, a response to an unintentional setting of the validator commission to 0% during a prior upgrade.

Unanimous Support for the Soft Fork Proposal

Taking the reins, blockchain engineer Vinh introduced the v2.2.2 soft fork proposal, which includes the implementation of a 5% commission among other upgrades. Voting on this proposal is set to conclude on October 3, 2023, and it has already garnered unanimous support with a 1.64% “Yes” vote share. Furthermore, the LUNC community temporarily suspended all Terra Classic USD (USTC) minting efforts. These consecutive developments have reignited market enthusiasm, propelling both LUNA and LUNC prices.

On-chain data paints an intriguing picture, revealing a substantial short-liquidation spike for LUNC, recently exceeding $20K. Simultaneously, LUNC’s Open Interest has surged by $1 million, indicating heightened trading activity. Nevertheless, as the long-short ratio declines to 0.67, a bearish correction remains a possibility.

In contrast, LUNA has experienced a bearish liquidation approaching $300K. Over just two days, its Open Interest surged by an impressive $16 million, signaling potential price volatility near resistance levels. Nonetheless, traders have observed a minor bearish correction as they capitalize on profits.

As we closely monitor the trajectory of LUNC’s price, which has surged by 15.6% over the past week, breaking critical resistance at $0.000065, it’s evident that the soft fork proposal is driving significant market dynamics. This development holds promise not only for LUNC but also for the broader Terra Luna ecosystem, marking an intriguing phase for investors and enthusiasts alike.