Terra Classic Upgrade Proposal Sparks LUNC and LUNA Rallies

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The Terra Classic community is gaining momentum around a pivotal blockchain upgrade proposal that could significantly influence the future of its native tokens, LUNC and LUNA. With growing optimism, both cryptocurrencies have seen notable price increases in recent days—LUNC surging by 9.06% and LUNA climbing 14.65% over the past week, according to CoinMarketCap data. This rally reflects renewed confidence in the network’s long-term viability and technical evolution.

At the heart of this momentum is Proposal v3.1.5, a critical governance initiative aimed at enhancing the security, efficiency, and competitiveness of the Terra Classic blockchain. If approved, the upgrade will introduce essential fixes and optimizations designed to strengthen the network’s infrastructure and user trust.

Understanding the Terra Classic v3.1.5 Proposal

The upcoming v3.1.5 upgrade represents more than just a technical patch—it's a strategic step toward revitalizing the Terra Classic ecosystem. The proposal includes several key components:

To guarantee stability, the development team has implemented rigorous testing protocols. A full rehearsal of the upgrade was conducted on the rebel-2 testnet, allowing developers and validators to simulate the process and identify potential issues before mainnet deployment.

This structured approach underscores the community’s commitment to a smooth, secure transition—one that could lay the foundation for stronger performance across the ecosystem.

👉 Discover how blockchain upgrades can impact token value and investor sentiment.

Why This Upgrade Matters for LUNC and LUNA

The success of Proposal v3.1.5 could have far-reaching implications for both LUNC (TerraUSD Classic) and LUNA (Terra Classic). While these tokens emerged from the aftermath of the original Terra collapse, they’ve maintained an active, dedicated community focused on rebuilding value through transparency and utility.

One of the most compelling factors supporting a bullish outlook is the ongoing token burn mechanism. Unlike traditional inflationary models, Terra Classic leverages a deflationary strategy where transaction fees are used to permanently remove LUNC tokens from circulation.

Recent data from LUNC Metrics reveals that 153.9 million LUNC tokens were burned in the past week alone—a clear signal of active network usage and community-driven supply reduction. As supply decreases and demand remains steady or increases, basic economic principles suggest upward pressure on price.

Additionally, increased validator participation and improved network reliability could attract new developers, decentralized applications (dApps), and investors—further boosting ecosystem growth.

Market Performance: How LUNC and LUNA Are Outperforming Peers

Over the last seven days, both LUNC and LUNA have outpaced many major altcoins in terms of price performance. In fact, their gains extend beyond weekly trends:

As of publication:

These figures reflect growing market confidence tied directly to the upgrade proposal and broader ecosystem improvements. While volatility remains inherent in cryptocurrency markets, the current trajectory suggests sustained interest driven by fundamentals rather than speculation alone.

Moreover, increased on-chain activity—including wallet growth, transaction volume, and burn rates—supports the narrative that Terra Classic is regaining traction as a functional blockchain platform.

Frequently Asked Questions (FAQ)

What is the Terra Classic v3.1.5 proposal?

The v3.1.5 proposal is a community-governed upgrade aimed at improving the security, performance, and sustainability of the Terra Classic blockchain. It includes critical bug fixes, gas incentive adjustments, and mandatory node updates for validators.

Why are LUNC and LUNA rising now?

Price increases are largely attributed to positive sentiment surrounding the v3.1.5 upgrade, combined with consistent token burning that reduces circulating supply. Strong community engagement and testnet validation also contribute to investor confidence.

What happens if the proposal fails?

If rejected, the upgrade will be delayed or revised. The network will continue operating under current protocols, but missed opportunities for enhancement could dampen market enthusiasm and slow ecosystem development.

How does token burning affect LUNC’s price?

Burning removes tokens from circulation permanently, creating deflationary pressure. With fewer tokens available over time, demand can outpace supply—potentially driving prices higher if adoption grows.

When will the blockchain halt occur?

The planned halt is set for block height 19,850,000, expected around September 18, 2024, pending proposal approval. This pause ensures all nodes can synchronize before resuming operations on the upgraded chain.

👉 Learn how token burns influence crypto market dynamics and long-term investment potential.

The Road Ahead: Can Terra Classic Reclaim Relevance?

While Terra Classic operates independently from Terra 2.0 (which launched without a stablecoin), its persistence demonstrates the resilience of decentralized communities. By focusing on transparency, continuous improvement, and economic mechanisms like token burning, Terra Classic aims to rebuild trust and utility.

Future developments may include:

These steps could position Terra Classic not just as a legacy chain, but as a viable platform for decentralized innovation.

Investors should remain informed and cautious, recognizing that while upgrades bring opportunity, they also carry execution risks. Monitoring on-chain metrics, community sentiment, and validator readiness will be crucial in assessing post-upgrade performance.

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Disclaimer: The information provided in this article is for educational and informational purposes only. It does not constitute financial advice, investment recommendation, or endorsement of any product or service. Cryptocurrency investments are subject to high market risk. Readers should conduct their own research and consult with financial professionals before making any decisions.