Following the activation of the Terra Luna Classic v22 update, LUNAC local cryptocurrency rates have increased by 431% in the last two weeks.
Update brings delegation and stacking capabilities back to the blockchain and triggers a mechanism to consume some transaction fees. At the time of writing, this asset is trading close to $0.00053. Most of the daily trading volume is concentrated on Binance ($1.5 billion), BtcTurk ($300 million), and KuCoin ($290 million).
Terra Luna Classic – Boosts Trading Volume on Binance
Binance saw a significant increase in trading volume after KuCoin announced it would stop accepting margin orders to buy LUNAC. The latter platform is a major investor in Terraform Labs.
Terraform Labs v22 Patch Revealed
After the collapse of the Terra ecosystem, developers at Terraform Labs released a patch focused on blockchain security. The update disables linking, delegation and stacking, the ability to run new verifiers, and the LUNA and UST exchange mechanism.
To get the network up and running again, the Terra Rebels initiative rolled out update v22, which aims to bring disabled functionality back to the blockchain. According to the statement, the update should also lay the groundwork for an effective mechanism for removing some commissions.
Terra Luna Classic Blockchain
On August 26, the team activated v22, an opportunity for users to participate in network management. Blockchain has a “transaction tax” of 1.2%, which may change in the future. Cryptocurrencies received as part of these fees are withdrawn from circulation by the network, putting deflationary pressure on the supply of LUNAC.
According to analyst Miles Deutscher, a blockchain with a transaction volume of $1 billion and imposed taxes will see around 120 billion LUNACs in circulation per day.
Edward Kim of Terra Rebels noted that the team cannot tax off-chain transactions, especially those made on centralized platforms.
One of the main goals of implementing and enforcing [the combustion mechanism] is to convey that the community can and will impose a tax. It wants the same thing to happen on CEX,” he wrote.
Binance criticized Terra Luna Classic developers
Binance CEO Changpeng Zhao has previously criticized Terra’s developers for lacking a system for withdrawing coins from the blockchain.
Terra Rebels – KuCoin
Terra Rebels project is already supported by several centralized platforms. In particular, KuCoin announced related solutions. Kim also added that the team plans to relaunch the Terra Classic USD (USTC) algorithmic stack coin. To this end, the developers plan to “restructure the bad debt” ecosystem.