Terra Classic Community Set to Overhaul Network with Block Size Reduction and Gas Fee Hike

The Terra Classic community is poised to pass two proposals, reducing maximum block size to mitigate spam attacks and increasing gas fees to enhance network security. Despite the price increase, development activity and social volume have declined, indicating less market attention. However, this trend could signal a potential price surge if historical patterns persist, with dwindling interest suggesting the token may not have reached its peak yet.

Terra Classic Community Prepares to Implement Proposals for Block Size Reduction and Gas Fee Increase

Amid a recent surge in voting activity, the Terra Classic (LUNC) community is poised to enact two significant proposals that could alter the network's technical parameters and impact its long-term health.

Proposal 1: Maximum Block Size Reduction

The first proposal aims to reduce the maximum block size on the Terra Classic network from its current capacity of 5 megabytes (MB) to a more modest 2 MB. This move is primarily driven by concerns over excessive peer-to-peer spam, which can potentially overload the network and degrade its performance.

According to voting data, an overwhelming majority of validators, representing 99.87% of the network's computational power, have endorsed the proposal. Only a negligible fraction of 0.13% have expressed opposition. Pending unforeseen circumstances, the proposal is expected to be implemented on April 23.

Proposal 2: Gas Fee Increase

The second proposal calls for a tenfold increase in gas fees from the current level of 3.74 LUNC to a new target of 37.4 LUNC. Gas fees are transaction processing charges designed to prevent network congestion and spam attacks.

Low gas fees can make a blockchain vulnerable to malicious actors who may flood the network with cheap transactions, hindering its functionality. By increasing the fees, the network can deter such attacks and ensure the availability of resources for legitimate transactions.

As of this writing, approximately 70.36% of validators have voted in favor of the gas fee increase, while 29.64% remain opposed. If implemented, the change could significantly strengthen the network's resilience against spam and other disruptions.

Market Response and Network Metrics

Following the positive developments surrounding the proposals, the price of LUNC experienced a modest surge. As of press time, the token was trading at $0.00010, reflecting an 8.97% increase over the previous 24 hours.

While this price movement suggests optimism among the community, on-chain data paint a somewhat mixed picture. Development activity on the Terra Classic network has declined in recent weeks, from a high of 7.12 on March 26 to a current level of 2.21. This metric indicates that the pace of new feature releases has slowed.

Social volume, another indicator of market sentiment, has also waned. According to data, LUNC's social volume has dipped to a reading of 18, suggesting that the token is garnering less attention from market participants.

Analysts interpret this decline in social volume as a potential positive for LUNC. Historically, asset prices have tended to rise as social volume diminishes, indicating that the token may not be near its market peak.

Conclusion

The Terra Classic community's willingness to implement these proposals underscores its commitment to improving the network's stability and functionality. While on-chain metrics suggest a temporary lull in development activity, the positive voting response and market reaction indicate a positive outlook for the project.

As the proposals move towards implementation, it remains to be seen how these changes will ultimately impact the Terra Classic ecosystem. However, the community's continued engagement and willingness to collaborate provide a solid foundation for the network's future growth and development.