Terraform Labs Backs LUNC 1.2% Tax Burn, While Terra Classic Community Launches Proposal to Re-Enable IBC Protocol
Mark Brennan - The Crypto Basic
Max Callisto says now is the right time for Terra Classic to re-open its doors to interoperability.
In a tweet today, Max Callisto, one of LUNC DAO’s CEOs, announced that he had launched a proposal for the Terra Classic community to re-enable the Inter Blockchain Communication (IBC) protocol.
For the uninitiated, the IBC protocol was created by Cosmos to connect independent blockchains and allows them to exchange data and tokens. As a Cosmos chain, Terra Classic used IBC but had to disable it during the LUNA Classic (LUNC) crash following the Terra USD (USTC) de-pegging incident to prevent LUNA liquidity pools from suffering impermanent losses.
Callisto, in his proposal, notes that now is a good time to re-open the connection between the Terra Classic network and other Cosmos chains, noting that the vibrant Terra Classic community will benefit the ecosystem. The Terra Classic community member highlighted that the community could not transfer over $1 million in Osmosis LUNC and USTC liquidity pools to the Terra Classic network that the community could use in other decentralized applications.
“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 indicated that they might restart their SCs on Terra Classic,” Callisto writes in his proposal.
It bears mentioning that in the face of the recent LUNC rally, Terra whistleblower FatMan has warned users against investing in the token, saying the recent rise in price and market cap is unsustainable as the network has little utility. However, the possible return of the Prism protocol and re-enabling of IBC ushering in interoperability could change this narrative.
LUNC has recently seen a huge price and market cap rally, bucking the overall crypto market trend. The string of impressive price performances has been linked to the community’s buzz surrounding the 1.2% tax rate burn proposal, which has received support from several crypto exchanges.
In a tweet today, Terra Classic developer ReXx of TerraRebels disclosed that pull request 101 had been officially merged, signaling that Terraform Labs (TFL) has given its backing to the proposal. Notably, the announcement confirms that the community will implement the parameter change for on-chain transactions on September 20.
So far, the latest proposal by Callisto has received four comments, all supporting the idea as the Terra Classic community hopes to stage a historic comeback.
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