Terra Luna Classic (LUNC) Community Divided Over New Governance Proposal

In recent developments, a major disagreement has been brewing in the Terra Luna Classic (LUNC) community after a popular validator, MrDiamondhandz

A major disagreement has hit the Terra Luna Classic (LUNC) community after a popular validator, MrDiamondhandz, strongly opposed a new governance proposal.

Taking to X, MrDiamondhandz, who runs LuncLiveOrg, called the proposal one of the worst in recent times. According to him, the proposal could have serious consequences for the network if approved.

The governance proposal in question seeks to create a Terra Classic Sub-DAO. This proposal is focused on plans to decentralize decision-making processes within the LUNC ecosystem.

The proposal also suggests forming a special team to handle emergencies without waiting for the full governance approval. This is meant to make decision-making faster and more efficient.

However, the proposal has sparked mixed reactions among community members. Critics say it could grant excessive, unchecked power to a select group and undermine the blockchain’s decentralized ethos.

Also, critics fear that bypassing traditional governance mechanisms could lead to decisions misaligned with the broader interests of the LUNC ecosystem.

Notably, the proposal has 39.41% approval, 7.95% opposition, and 25.47% votes marked as “No with veto.” The voter turnout is 28.95%, falling short of the 40% quorum required for passage.

MrDiamondhandz has emerged as a vocal critic of the proposal. In an X post, he opines that the proposal is a realistic effort to develop centralized legitimacy under the pretense of decentralization.

This proposal is one of the worst in recent times and it baffles me how some members are supporting it. It's a blatant attempt to create a sub-DAO with excessive, unchecked power, misaligned with the true needs of the $LUNC community.

— MrDiamondhandz 💎🙌🏻 (@DHohle) August 25, 2023

Moreover, a LUNC Telegram group screenshot has sparked further debate. In the chat, a community member says they might leave the blockchain if the proposal fails. Another user agrees, highlighting concerns that the issue could split the community.

Speaking on the above, MrDiamondhandz pointed out that some supporters of the proposal have even threatened to leave if it does not pass. However, he maintains that their departure would benefit the Terra Luna Classic network.

Unfortunately, this dissension comes as the Terra Luna Classic (LUNC) community recently celebrated a major achievement. Reports show that the total number of LUNC tokens burned in the network has passed 400 billion.

It is worth mentioning that despite market volatility and controversy, LUNC’s price has stayed relatively stable, with no significant fluctuations observed. However, Investors are keenly following the situation, as substantial governance changes could influence market sentiment. As of this report, Terra Classic is trading at $0.00006361, increasing by 1.11% in the last 24 hours.

In related news, CoinGape reported that the Terra Luna Classic community is considering reducing the 21-day waiting period for withdrawing staked LUNC.