Terra Luna Classic (LUNC) Community Grapples with Internal Conflict over LUNC Dash Proposal

The Terra Luna Classic (LUNC) community is grappling with internal conflict as a prominent validator fiercely opposes a newly proposed strategy

The Terra Luna Classic (LUNC) community is rife with internal conflict as a prominent validator has fiercely opposed a newly proposed strategy to revitalize the struggling stablecoin, USTC.

MrDiamondhandz, a well-known validator who operates LuncLiveOrg, has shown strong opposition to the initiative.

The LUNC Dash Proposal

The proposal in question, known as the LUNC Dash Proposal, aims to reshape the future of USTC (TerraUSD Classic) by repositioning it to better serve its market relevance and mitigate regulatory challenges.

Key aspects of the proposal include rebranding TerraUSD (USTC) to Universal Standard Token Classic (USTC) to establish a new identity. It also suggests reclassifying USTC as a memecoin, acknowledging its current market dynamics, while retaining the original USTC ticker for brand recognition.

Moreover, the proposal suggests forming a special response team that can quickly react to emergencies without waiting for full governance approval.

Related: Diverging Paths in Crypto Futures: Bitcoin Volume Rises as Ethereum and Solana Remain Flat

Validator Condemns the Proposal

MrDiamondhandz, a long-standing member of the LUNC community, has vociferously criticized the current proposals up for vote.

He called them “the worst I’ve ever seen,” alleging that certain groups are attempting to exert control over the blockchain and act as gatekeepers. He expressed his deep frustration, stating that these individuals have been pursuing their own agenda from the outset.

Just when I thought they couldn’t get any DUMBER they have outdone themselves. Now the SAME $LUNC people want to take money from the community pool and inject it into their dexes that have TERRIBLE, low volume, so they can syphon it out the back door. NO! 💎🤲🏻 #Crypto

— Mr. Diamond Handz 🦇 (Best Shot) (@LuncLiveOrg) April 17, 2024

Despite the strong opposition, the proposal has elicited mixed reactions within the community. It currently stands at 39.41% approval, 7.95% opposition, and 25.47% votes marked as “No with veto.” With a voter turnout of 28.95%, it falls short of the 40% quorum required for passage.

“They want your community pool and control of the chain. Nothing more,” MrDiamondhandz asserted.

Related: Hashdex Seeks SEC Approval to Add Litecoin to Its Nasdaq Crypto Index US ETF

A Builder’s Rebuttal

Responding to MrDiamondhandz’s critique, another LUNC builder accused him of hypocrisy. “It’s you who seeks control over LUNC, you’ve stolen its name,” they said, noting MrDiamondhandz’s previous attempts to block the progress of USTC.

It's you who seeks control over #LUNC, you've stolen it's name. The hypocrisy isNow, you claim others are doing the same. You've openly killed any attempt to progress #USTC, while attempting to pursue interests with @IOHK_Charles I guess killing USTC will help your case.

— LUNA Builder (@LUNA_Builder) April 17, 2024

The builder criticized MrDiamondhandz’s discussions with Cardano’s Charles Hoskinson about stablecoins. Hoskinson shared his plans for Cardano’s stablecoin in January, which caught MrDiamondhandz’s attention. Since 2022, the LUNC ecosystem has been developing USTC, and MrDiamondhandz had pitched it to Hoskinson, who showed interest in algorithmic stablecoins.

Uncertainty Clouds the Future of USTC and LUNC Governance

There’s been a running sentiment within the community that USTC needs a turnaround. Following the collapse of the Terra ecosystem in 2022, USTC shifted from a stablecoin to a speculative asset, with its classification remaining unclear.

This confusion could threaten its place on major exchanges. As the crypto community watches closely, it remains to be seen whether the proposal will pass or if the infighting will continue to hamper the progress of Terra Luna Classic.

The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.