Terraform Labs, the team behind the Terra blockchain, has unveiled a major governance proposal that is causing a stir in the crypto community. The proposal, known as Proposal 4818, is set to be the final chain upgrade under TFL’s direct oversight and has already garnered significant attention.
The proposal, which aims to upgrade Terra’s mainnet to version 2.12.4, includes several key upgrades such as enforcing a 5% minimum commission rate for validators and burning TFL’s LUNA holdings. This move comes as TFL announced its winding down following an SEC settlement and the implementation of its Chapter 11 plan.
One of the most significant changes in the proposal is the burning of TFL’s LUNA holdings, complying with a bankruptcy court order. This token burn is expected to reduce the circulating supply of LUNA, potentially leading to a price rally for both LUNA and LUNC tokens.
With 98.55% of the total votes cast in favor of the proposal, it is clear that the Terra community is supportive of the upgrades. Many investors and community members are optimistic about the potential price rally for LUNA and LUNC tokens following the implementation of the proposal.
As TFL steps back, the future of the Terra blockchain will increasingly rely on community-led initiatives like the Phoenix Directive. This shift in governance could pave the way for further innovation and development within the Terra ecosystem.
While LUNC price was down nearly 5% and LUNA price down 3.83% at the time of writing, the community remains hopeful for a positive price rally post-upgrade. The crypto community will be eagerly watching to see how the implementation of Proposal 4818 will impact the Terra blockchain and its native tokens.
