Terraform Labs’ Upgrade and Token Burn Could Ignite LUNA and LUNC Price Rally—Here’s Why

• Terraform Labs’ upgrade and significant token burn aim to reduce LUNA’s supply, potentially driving a price rally.
• As Terraform Labs exits, the community’s role will be crucial in sustaining the Terra blockchain’s momentum and price growth.

In line with the most recent CNF post on Terraform Labs’ Final Upgrade Unveiled, it was revealed that Proposal 4818 closes the chapter amid SEC settlement, according to Terraform Labs’ proposal. This major governance upgrade for the Terra blockchain has sparked discussions within the crypto community.

Terraform Labs’ Final Upgrade Could boost LUNA and LUNC prices

The TFL’s governance proposal, known as Proposal 4818, began on August 22 and will conclude on August 29. This potential final upgrade under Terraform Labs’ direct oversight includes critical changes such as a significant token burn, a 5% minimum commission rate for validators, and the removal of blacklist functionality. With strong community backing, these updates aim to reduce LUNA’s supply and resolve past issues, possibly sparking a price rally for LUNA and LUNC.

As Terraform Labs steps back, the Terra blockchain’s future will depend on community-driven efforts like the Phoenix Directive. While LUNA and LUNC prices have dipped recently, optimism remains high for a potential price rally following the token burn.

Currently, according to CoinMarketCap, Terra Classic (LUNC) is trading at $0.00008214, having declined by 3.53% in the past day and surged by 2.63% in the past week. See the LUNC price chart below.