The Terra Luna Classic (LUNC) Community in Conflict

The Terra Luna Classic (LUNC) community faces internal strife as a prominent validator opposes a proposed strategy to revitalize the struggling stablecoin, USTC.

MrDiamondhandz, a key validator running LuncLiveOrg, has expressed significant dissent towards the initiative.

The LUNC Dash Proposal

The LUNC Dash Proposal seeks to reshape USTC (TerraUSD Classic) to enhance its market relevance and address regulatory issues. Key aspects include:

• Rebranding: Changing TerraUSD (USTC) to Universal Standard Token Classic (USTC) to improve its identity.
• Reclassification: Suggesting to classify USTC as a memecoin, reflecting current market dynamics while keeping the USTC ticker for recognition.
• Emergency Response Team: Proposing the formation of a special team that can respond swiftly without needing full governance approval.

Related: Diverging Paths in Crypto Futures: Bitcoin Volume Rises as Ethereum and Solana Remain Flat

Validator Condemns the Proposal

MrDiamondhandz criticized the proposals, claiming they are “the worst I’ve ever seen,” accusing some groups of trying to control the blockchain. He stated his frustration, mentioning:

> “Just when I thought they couldn’t get any DUMBER they have outdone themselves… Now the SAME $LUNC people want to take money from the community pool and inject it into their dexes that have TERRIBLE, low volume, so they can syphon it out the back door. NO! 💎🤲🏻”

Despite the criticism, reactions to the proposal are mixed:
– 39.41% approval
– 7.95% opposition
– 25.47% “No with veto” votes
– Voter turnout at 28.95%, not meeting the 40% quorum for passage.

MrDiamondhandz asserted, “They want your community pool and control of the chain. Nothing more.”

Related: Hashdex Seeks SEC Approval to Add Litecoin to Its Nasdaq Crypto Index US ETF

A Builder’s Rebuttal

In response, another LUNC builder accused MrDiamondhandz of hypocrisy, stating:

> “It’s you who seeks control over #LUNC, you’ve stolen its name… You’ve openly killed any attempt to progress #USTC.”

This critic highlighted MrDiamondhandz’s previous collaboration with Cardano’s Charles Hoskinson regarding stablecoins. Over the past year, the LUNC ecosystem has been developing USTC, with MrDiamondhandz expressing interest to Hoskinson on algorithmic stablecoins.

Uncertainty Clouds the Future of USTC and LUNC Governance

There’s widespread sentiment in the LUNC community that USTC requires revitalization. After the Terra ecosystem’s collapse in 2022, USTC changed from a stablecoin to a speculative asset, leading to an unclear classification that could jeopardize its status on major exchanges. With keen attention from the crypto community, it remains uncertain whether the proposal will succeed or if ongoing disputes will impede Terra Luna Classic’s progress.

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