Quick Look:
- Proposal 12093 by Terra (LUNA) Classic was rejected with 55% opposition, 1% veto, and 5% abstention.
- Concerns include vague details, centralization risks, and the absence of KYC.
- LUNA price increases 8%, trading volume decreases 54%.
- Mixed signals in the crypto market: USTC is up 7%, and LUNA has gained 7.27%.
The community decisively rejected Terra (LUNA) Classic’s latest governance proposal. For instance, the proposal, numbered 12093, was titled “Establish a Terra Classic Team”. It has garnered only 38% support and faced substantial opposition, with 55% voting against it and a significant 1% vetoing it outright. An additional 5% of the voters chose to abstain, highlighting the contentious nature of the proposal.
Key Concerns Spark Backlash, 55% Vote No
The proposal’s failure was attributed to several critical concerns raised by the community, including its vague details and potential contradictions with the existing Pay Job rule. The centralization risks and absence of Know Your Customer (KYC) protocols for developers also fueled the opposition. Prominent voices in the community, like the Fragwuerdig Validator, have emphasized the necessity for proposals to delineate their relation to established governance rules, thus reflecting a demand for greater clarity and accountability.
LUNA Rises 8%, Trading Volume Down 54%
Amidst the governance turmoil, Terra Luna Classic’s price saw an 8% increase, currently priced at $0.000106. However, the trading volume has notably decreased by 54%, indicating a tepid market response. Despite this, the market-wide derivatives trading has buoyed hopes for a recovery. Furthermore, Binance is reporting a 7% increase in futures open interest and Huobi is experiencing a substantial 25% surge in LUNA futures open interest.
Mixed Signals: USTC Up 7%, LUNA Gains 7.27%
The broader cryptocurrency market also reflected mixed signals. USTC, another token in the Terra ecosystem, reported a 7% increase in price to $0.0183. On the other hand, LUNA coin reported a 7.27% intraday gain. However faced a challenging environment with a 33.20% monthly and 54.78% yearly return ratio. The bearish indicators for the LUNA coin include selling pressure and bearish crossovers on trading charts, with technical analysis pointing to the coin being currently oversold.
LUNA Faces Resistance, Social Dominance Drops 28%
Technical levels for LUNA suggest immediate support at $0.6300 and $0.6100, with resistance expected near $0.6700 and $0.6900. The Fibonacci retracement levels indicate LUNA is trading below the 38.2% mark, hovering closer to the 23.6% zone. A 28.10% drop in social dominance and a decline in Twitter followers complicate this technical position, painting a bearish picture of the cryptocurrency’s social traction.
As the Terra community regroups after the setback of Proposal 12093, the focus shifts to addressing the foundational issues highlighted during the voting process. The financial landscape of Terra tokens remains under scrutiny as investors and developers seek stability and clarity in the cryptocurrency world’s evolving governance and market conditions.
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