• The violation of a fundamental decentralization rule has been flagged in the LUNC ecosystem.
• The core stakeholders and whales continue to work to push LUNC to higher price levels.

The price of Terra Luna Classic (LUNC) has fallen substantially in the past 24 hours amid recent developments in the community. This includes claims that a validator violated chain rules and a prominent Bitcoin (BTC) investor unveiling 40 billion LUNC holdings.

Claims of Validator Misconduct

On Sunday, a concerned Terra Luna Classic community member submitted a proposal for discussion with claims that the JESUSisLORD 2 (JIL2) validator broke the network rule. 

Specifically, he alleged the validator created a second validator under the same entity, directly violating the Dynamic Commission (dynComm) rule. He noted that the action is a deliberate attempt to fragment their Voting Power (VP) and maintain lower commission rates for each validator.

The LUNC community members have different opinions on the recent proposal and whether urgent disciplinary actions, such as tombstoning, are necessary. While some agree that the validator activity creates a bad precedent, others claim that the rule does not exist expressly.

Notably, the Terra Classic community introduced the dynComm rule to promote decentralization and fairness in the concentration of power within the network. This rule changes the commission rate based on a validator’s VP; the rate increases as the VP grows.  

Although the dynComm has successfully moved VP from larger to smaller validators, it also exposed a flaw that the current design cannot fix. For instance, a validator can bypass the rule by creating a secondary validator under the same entity. 

To prevent further recurrence, the community member proposed that governance close the loophole using its legislative and judicial-like powers.

Bitcoin Investor Reveals 40 Billion LUNC Holdings

In a related development, prominent Bitcoin investor Vasil has disclosed possession of 40 billion LUNC tokens, valued at about $2.9 million at the current market price. In a post on X, Vasil expressed optimism for the Terra Luna Classic community, stating,

I believe in the community, and I am supporting it strong.

Vasil’s admission comes in response to frequent questions regarding his LUNC holding since he’s also regarded as a “whale” in that market. Vasil’s support for LUNC quickly ignited discussions within the online crypto community. 

Some expressed excitement over his bullish move, while others raised concerns about the size of his holding affecting market dynamics. In response, Vasil says the community needs more people like him to buy more LUNC.

Notably, Vasil’s LUNC portfolio disclosure coincides with a market price decline. LUNC has experienced a 3.07% decline in the past 24 hours, setting its price at $0.00007496. 

As highlighted in our previous article, Terra Classic experienced a major crash in May 2022 following the devaluation of TerraUSD (UST) stablecoin. This resulted in the value of LUNC dropping by 99% from its peak of $119.8 a few weeks back. 

Since then, the project’s developers and community have been working to raise the value back to at least $1. Expectations are high that these initiatives and the whale’s confidence in the project might propel LUNC’s price to higher levels soon.