Terra Luna Classic Considers KYC Repeal Amid Growth Concerns

Terra Luna Classic (LUNC) is debating Proposal 12091, which aims to overturn the recently implemented KYC requirements for developers. Supporters argue that KYC has hindered LUNC's growth, while opponents maintain its necessity. LUNC and USTC prices have faced setbacks due to futures selloff and options expiry, with LUNC dropping 1% and USTC 3% in the last 24 hours.

Terra Luna Classic: Repealing KYC Amid Growth Concerns

Could KYC Repeal Spur Growth?

The Terra Luna Classic community is debating a proposal to repeal a previous KYC requirement for developers. Proponents argue that KYC has hindered project growth, citing the low percentage of "Yes" votes on the proposal.

Negative Impacts vs. Positive Outcomes

The proposal claims that negative effects of KYC, such as restricting experienced developer involvement, outweigh any potential benefits. It suggests that KYC may have stifled the revival of LUNC and the repegging efforts for USTC.

Market Reaction: A Mixed Bag

While the LUNC and USTC prices have experienced some volatility amid futures selloff and options expiry, the spot volume remains strong. LUNC has fallen slightly, but the community anticipates a rebound ahead of the v2.4.2 upgrade. USTC has also seen a moderate decline, with traders adjusting their positions.

Delayed Decision-Making

Despite the concerns raised, the proposal has yet to gain significant support within the community. Only 39% of votes are in favor of the repeal, while the remaining 60% oppose it. Validators are also split, with 4 voting in favor and 15 against. The voting deadline is March 28, 2023.

Renewed Market Momentum?

The market is currently in a state of flux, with traders reassessing their positions. Whether the repeal of KYC requirements will ultimately spur growth and rally prices remains to be seen. The community's expectations for the upcoming v2.4.2 upgrade may provide some market buoyancy.

Diverse Perspectives

It is important to note that opinions within the community vary widely. Some members support the repeal, believing it will foster growth, while others remain cautious, citing potential risks and security concerns.

Watch This Space

As the deadline for the proposal approaches, the community continues to engage in heated debate. The outcome of the vote will shape the future direction of Terra Luna Classic, and investors are advised to monitor developments closely.