CDS Crypto News Terra Luna Classic Proposal Overcomes Concerns, Leading to a 10% Drop in LUNC and a 15% Decrease in USTC
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Terra Luna Classic Proposal Overcomes Concerns, Leading to a 10% Drop in LUNC and a 15% Decrease in USTC

Terra Luna Classic proposal to decrease validator numbers passes despite centralization and security concerns, LUNC falls 10% and USTC 15%.

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Terra Luna Classic Proposal Overcomes Concerns, Leading To A 10% Drop In Lunc And A 15% Decrease In Ustc

The Terra Luna Classic community has approved Proposal 11888, aimed at reducing the number of validators on the Terra Classic chain. Despite facing criticism from certain validators and community members over concerns related to security, centralization, and growth risks, the proposal has surpassed the pass threshold, receiving support from some validators within the top 100.

Terra Luna Classic Proposal Overcomes Concerns, Leading to a 10% Drop in LUNC and a 15% Decrease in USTC

The proposal, titled ‘Decrease the validator set of Terra Classic to 100 from 135,’ seeks to eliminate smaller validators, citing that reduced requirements for validator status could enable malicious actors to create validators and impersonate others. According to the proposal, the current validator set size in Terra Classic is 130, and even validators in lower positions possess a substantial amount of delegated LUNC (Terra Luna Classic’s native token), making it relatively easy for anyone to launch a Terra Classic validator.

While some validators argued in favor of removing inactive and non-participating validators, the proposal contends that its approval would benefit smaller validators through the dynamic commission module and re-delegation mechanisms.

The voting results show 31.69% ‘Yes’ votes, 22.49% ‘No’ votes, and 46 ‘Abstain’ votes. Concerns have been raised within the community, expressing the belief that the proposal may harm the chain’s decentralization goals, decrease security, and adversely affect small validators contributing to the community.

Notably, the largest validator, Allnodes, abstained from taking a side, casting an ‘Abstain’ vote. Out of the total votes, 14 validators supported the proposal, 25 opposed it, and 16 abstained.

Terra Luna Classic Proposal Overcomes Concerns, Leading To A 10% Drop In Lunc And A 15% Decrease In Ustc
Sources:coingape

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