Wednesday, February 8, 2023
HomeCrypto NewsTerraform Labs supports the LUNC 1.2% tax burn, whereas the Terra Classic...

Terraform Labs supports the LUNC 1.2% tax burn, whereas the Terra Classic Community proposes re-enabling the IBC Protocol.

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Max Callisto, one of the LUNC DAO’s CEOs, revealed today through Twitter that he had launched a request for the Terra Classic community to re-enable the Inter Blockchain Communication (IBC) protocol. According to Max Callisto, the time has come for Terra Classic to reopen its doors to interoperability.

For those who are unaware, Cosmos developed the IBC protocol to link separate blockchains and allow them to trade tokens and data. 

IBC was utilized by Terra Classic as a Cosmos chain, but it had to be turned off after LUNA Classic (LUNC) crashed after the Terra USD (USTC) de-pegging incident in order to prevent LUNA liquidity pools from suffering temporary losses.

In his proposal, Callisto argues that it is time to restore communication between the Terra Classic network and the other Cosmos chains since the ecosystem will gain from the thriving Terra Classic community. 

The member of the Terra Classic community emphasized that the community could not use over $1 million in liquidity pools from Osmosis LUNC and USTC that were available on the Terra Classic network for usage in other decentralized applications.

According to Callisto’s proposal:

“By enabling IBC, USTC & LUNC outside the Terra Classic chain will be able to find its way back to Terra Classic, thus, bringing back the liquidity to the chain for other uses. There are still other functional dApps on Terra Classic such as Astroport and Prism recently indicating that they might restart their SCs on Terra Classic.”

It is important to note that Terra whistleblower FatMan has warned users not to buy the token in the wake of the recent LUNC boom, claiming that the network’s limited value makes the recent rise in price and market cap unsustainable. 

This story might be altered by the potential reintroduction of the Prism protocol and the reactivation of IBC, which would bring in interoperability.

LUNC has had a massive price and market cap increase, defying the general trend in the cryptocurrency market. The community’s buzz surrounding the 1.2% tax rate burn plan, which has gotten backing from a number of cryptocurrency exchanges, has been tied to a streak of remarkable price performances.

Meanwhile, Terra Classic developer ReXx of TerraRebels revealed in a tweet today that pull request 101 had been formally merged, indicating that Terraform Labs (TFL) has endorsed the proposal. Notably, the announcement states that on September 20 the community will put the parameter modification for on-chain transactions into effect.

The Terra Classic community is hoping to stage a historic comeback, and the latest suggestion by Callisto has so far drawn comments, all in favor of the plan.

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