• The Terra Luna Classic community just welcomed a major upgrade to bring enhanced staking rewards.
• More than ever, the LUNC ecosystem aims to restore value to its native tokens.

The Terra Luna Classic community has announced the release of the v3.1.3 upgrade for enhanced staking rewards and burn tax redistribution. The upgrade by popular developer Fragwerdig went live on the Terra Classic chain at block 19108180 on Monday, July 29.

Terra Luna Classic Stabilize Network with v3.1.3 Upgrade

According to a popular crypto analyst, Collin Brown, the LUNC burn tax distribution has been set at 80% burn, 10% Oracle Pool, and 10% Community Pool. This distribution is beneficial to network validators as it will help boost staking rewards and LUNC prices. However, block rewards for validators would come exclusively from gas fees under the new mechanism.

The upgrade diverted the Community Pool rewards from burn tax to the Oracle Pool leveraging Oracle Split logic. This happened without the loss of a single chain block and outage. The upgrade proposal received majority support from validators and delegators with a 99.9 “Yes” vote.  

Following the upgrade, the staking ratio recorded a new high with a rise of 15.39%. Meanwhile, the number of staked LUNC rose to 1.04 trillion as investors anticipate an increase in the near term.

Despite the upgrade, tokens in the Terra Luna Classic ecosystem failed to build upward momentum. LUNC declined by 2.5% within the past 24 hours to trade at $0.00008353. However, the trading volume rose 4.8%, within the same period to $13.9 million. 

As shown on Coinglass, LUNC futures open interest increased by over 2%, while 1000 LUNC futures on Binance fell by 3% within 24 hours. A further decline was also observed in the USTC token. In the last 24 hours, USTC’s price dropped 2.7% of its value to trade at $0.01974. The trading volume followed a similar path with a 44.6% drop to $6.4 million. However, total USTC futures open interest saw mixed trading across various crypto exchanges.

Surprisingly, some experts cautioned earlier that passing the proposal could lead to immediate price declines. As highlighted in our earlier report, these experts cited a 0.5% annual percentage drop in validators’ block reward as a key issue. In the long run, supporters of the v3.1.3 upgrade believe the shift might benefit the ecosystem, particularly in boosting staking.

What’s Next for Terra Luna Classic

Following the burn tax upgrade, the Terra Luna Classic community awaits another major implementation, Tax2Gas scheduled for the end of July. According to our earlier report, this implementation is expected to simplify transactions for developers and users by integrating burn tax directly into gas fees.

This integration eliminates the need for manual calculation of burn tax by dApp developers, enhancing user experience on the Terra Classic network. The community is debating a proposal to raise the burn tax to 1.2%, aiming to boost LUNC’s price by encouraging token burns on transactions.