The LUNC community has experienced a setback in their plans to revive the crypto token following the rejection of a proposal that was believed to be beneficial to the ecosystem. This latest proposal joins a growing list of proposals that have been put forward in a bid to restore LUNC to its previous highs.
An Overview Of The Rejected LUNC Proposal The proposal titled ‘(Signal Prop) Investigate EVM functionality’ was seeking to gain the community’s approval to open up the Terra platform to Ethereum Virtual Machine (EVM). That would have possibly led to the Terra chain becoming interoperable with a number of chains that already exist under the EVM umbrella.
The proposal also highlighted how Terra, being compatible with Rollups, could increase the network’s processing power as more transactions will be able to be processed simultaneously. Terra’s potential compatibility with Optimistic transactions also meant that the network would not need to send direct security information on each transaction.
This plan, if implemented, also has the potential to boost liquidity in the Terra ecosystem, something which could have a positive impact on LUNC’s price. This is because it would have been easy for existing decentralized applications (dApps) to migrate to the network with ” minimal or even no development time.”
Token price stalls at $0.000124 | Source: LUNCUSD on Tradingview.com Why The Proposal Could Have Been Rejected DiamondHandz, a prominent member of the LUNC community, provided insights into why the proposal might have been rejected. He shared an X (formerly Twitter) post that revealed a memo from Allnodes, one of the validators who voted against the proposal. Based on the memo, Allnodes looks to have had reservations about the cost involved in implementing such a project.
Following the post, another X user responded and noted how the proposal was just about carrying out an analysis and investigation as another proposal will need to be passed for implementation. The user further stated that members need to approve these kinds of proposals “otherwise there won’t be any progress.”
Indeed, the proposal noted how this move was just to show how and why Terra should consider being EVM-compatible. Implementing the changes into the code would have required another proposal. It is a possibility that validators like Allnodes misunderstood the objectives behind the proposal or simply believed that there was not enough funding to finance the project in the long run.
Despite this setback, the LUNC community can derive joy in the fact that the ‘Genuine Labs Terra Classic Development Proposal’ was passed. That is another proposal that can help make Terra more interoperable with other chains and help enhance liquidity and cross-chain DeFi applications.
Featured image from Finbold, chart from Tradingview.com
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Scott Matherson Scott Matherson is a leading crypto writer at Bitcoinist, who possesses a sharp analytical mind and a deep understanding of the digital currency landscape. Scott has earned a reputation for delivering thought-provoking and well-researched articles that resonate with both newcomers and seasoned crypto enthusiasts. Outside of his writing, Scott is passionate about promoting crypto literacy and often works to educate the public on the potential of blockchain.